Pricing · markup guide
60% markup: margin and selling price
A 60% markup means the selling price is your cost plus 60% of that cost, so you multiply the cost by 1.6. It gives a profit margin of 37.5%, because the profit is measured against the higher selling price. An item that costs £100 sells for £160.00 and makes £60.00 profit.
VAT rate checked against GOV.UK on .
Profit margin
37.5%
from a 60% markup
Multiply cost by
1.6
to get the price ex VAT
Price on £100 cost
£160.00
before VAT
With 20% VAT
× 1.92
cost to shelf price
Selling prices with a 60% 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 | £1.60 | £0.60 | £1.92 |
| £5.00 | £8.00 | £3.00 | £9.60 |
| £10.00 | £16.00 | £6.00 | £19.20 |
| £25.00 | £40.00 | £15.00 | £48.00 |
| £50.00 | £80.00 | £30.00 | £96.00 |
| £100.00 | £160.00 | £60.00 | £192.00 |
| £250.00 | £400.00 | £150.00 | £480.00 |
| £1,000.00 | £1,600.00 | £600.00 | £1,920.00 |
Nearby markups
Markup, the margin it gives and the multiplier to use on your cost.
| Markup | Margin | Multiplier |
|---|---|---|
| 40% | 28.57% | × 1.4 |
| 45% | 31.03% | × 1.45 |
| 50% | 33.33% | × 1.5 |
| 55% | 35.48% | × 1.55 |
| 65% | 39.39% | × 1.65 |
| 70% | 41.18% | × 1.7 |
| 75% | 42.86% | × 1.75 |
| 80% | 44.44% | × 1.8 |
Markup is not the same as margin
People often mix these up. A 60% markup is a 37.5% margin. If you actually want a 60% margin, you need a markup of 150%, so the price is cost × 2.5.
How far you can discount
With a 60% markup you can take up to 37.5% off the selling price before you are selling at cost. A 10% discount leaves a margin of 30.56%, and 20% off leaves 21.88%.
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 × 1.92. The VAT goes to HMRC, so it does not change your 37.5% margin.
Profit in each pound of sales
Gross profit is just under two fifths of each pound you take before VAT, and the goods cost you the other 62p. After a 10% discount you would need to sell about 36% more units to make the same gross profit as at full price.
How far apart the markup and margin are
At this level the two figures are far apart: the margin is 22.5 percentage points below the markup. On a £100 cost, pricing for a true 60% margin would mean charging £250.00 instead of £160.00. Another 10 points of markup would add 3.68 percentage points of margin.
Other markups
- 45% markup (31.03% margin)
- 50% markup (33.33% margin)
- 55% markup (35.48% margin)
- 65% markup (39.39% margin)
- 70% markup (41.18% margin)
- 75% markup (42.86% margin)
Common questions
What margin is a 60% markup?
37.5%. Divide the markup by 100 plus the markup: 60 ÷ 160 = 37.5%.
How do I add a 60% markup to a price?
Multiply the cost by 1.6. For example, £40 × 1.6 = £64.00. In Excel or Google Sheets, with the cost in A2, use =A2*1.6.
What is a 60% markup on £100?
£60 of profit, so the selling price is £160.00 before VAT, or £192.00 with 20% VAT added.
How do I work out the cost from a price with a 60% markup?
Divide the selling price by 1.6. A price of £60 means a cost of £37.50. 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.