Pricing · markup guide
35% markup: margin and selling price
A 35% markup means the selling price is your cost plus 35% of that cost, so you multiply the cost by 1.35. It gives a profit margin of 25.93%, because the profit is measured against the higher selling price. An item that costs £100 sells for £135.00 and makes £35.00 profit.
VAT rate checked against GOV.UK on .
Profit margin
25.93%
from a 35% markup
Multiply cost by
1.35
to get the price ex VAT
Price on £100 cost
£135.00
before VAT
With 20% VAT
× 1.62
cost to shelf price
Selling prices with a 35% markup
Price with VAT assumes you are VAT registered and the item is standard-rated at 20%.
| Cost | Selling price | Profit | Price with VAT |
|---|---|---|---|
| £1.00 | £1.35 | £0.35 | £1.62 |
| £5.00 | £6.75 | £1.75 | £8.10 |
| £10.00 | £13.50 | £3.50 | £16.20 |
| £25.00 | £33.75 | £8.75 | £40.50 |
| £50.00 | £67.50 | £17.50 | £81.00 |
| £100.00 | £135.00 | £35.00 | £162.00 |
| £250.00 | £337.50 | £87.50 | £405.00 |
| £1,000.00 | £1,350.00 | £350.00 | £1,620.00 |
Nearby markups
Markup, the margin it gives and the multiplier to use on your cost.
| Markup | Margin | Multiplier |
|---|---|---|
| 15% | 13.04% | × 1.15 |
| 20% | 16.67% | × 1.2 |
| 25% | 20% | × 1.25 |
| 30% | 23.08% | × 1.3 |
| 40% | 28.57% | × 1.4 |
| 45% | 31.03% | × 1.45 |
| 50% | 33.33% | × 1.5 |
| 55% | 35.48% | × 1.55 |
Markup is not the same as margin
People often mix these up. A 35% markup is a 25.93% margin. If you actually want a 35% margin, you need a markup of 53.85%, so the price is cost × 1.5385.
How far you can discount
With a 35% markup you can take up to 25.93% off the selling price before you are selling at cost. A 10% discount leaves a margin of 17.7%, and 20% off leaves 7.41%.
Adding VAT
If you are VAT registered and sell at the 20% standard rate, add VAT after the markup. That makes the shelf price cost × 1.62. The VAT goes to HMRC, so it does not change your 25.93% margin.
Profit in each pound of sales
Gross profit is just over a quarter of each pound you take before VAT, and the goods cost you the other 74p. After a 10% discount you would need to sell about 63% more units to make the same gross profit as at full price.
How far apart the markup and margin are
The two figures drift further apart as the markup rises: the margin is 9.07 percentage points below the markup. On a £100 cost, pricing for a true 35% margin would mean charging £153.85 instead of £135.00. Another 10 points of markup would add 5.11 percentage points of margin.
Other markups
- 20% markup (16.67% margin)
- 25% markup (20% margin)
- 30% markup (23.08% margin)
- 40% markup (28.57% margin)
- 45% markup (31.03% margin)
- 50% markup (33.33% margin)
Common questions
What margin is a 35% markup?
25.93%. Divide the markup by 100 plus the markup: 35 ÷ 135 = 25.93%.
How do I add a 35% markup to a price?
Multiply the cost by 1.35. For example, £40 × 1.35 = £54.00. In Excel or Google Sheets, with the cost in A2, use =A2*1.35.
What is a 35% markup on £100?
£35 of profit, so the selling price is £135.00 before VAT, or £162.00 with 20% VAT added.
How do I work out the cost from a price with a 35% markup?
Divide the selling price by 1.35. A price of £60 means a cost of £44.44. If the price includes 20% VAT, divide by 1.2 first.
Sources and assumptions
- Markup = profit ÷ cost. Margin = profit ÷ selling price. Both use prices before VAT.
- Cost means what you pay for the item, excluding any VAT you can reclaim.
Figures are rounded to the nearest penny or to two decimal places.