Pricing · markup guide
65% markup: margin and selling price
A 65% markup means the selling price is your cost plus 65% of that cost, so you multiply the cost by 1.65. It gives a profit margin of 39.39%, because the profit is measured against the higher selling price. An item that costs £100 sells for £165.00 and makes £65.00 profit.
VAT rate checked against GOV.UK on .
Profit margin
39.39%
from a 65% markup
Multiply cost by
1.65
to get the price ex VAT
Price on £100 cost
£165.00
before VAT
With 20% VAT
× 1.98
cost to shelf price
Selling prices with a 65% 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 | £1.65 | £0.65 | £1.98 |
| £5.00 | £8.25 | £3.25 | £9.90 |
| £10.00 | £16.50 | £6.50 | £19.80 |
| £25.00 | £41.25 | £16.25 | £49.50 |
| £50.00 | £82.50 | £32.50 | £99.00 |
| £100.00 | £165.00 | £65.00 | £198.00 |
| £250.00 | £412.50 | £162.50 | £495.00 |
| £1,000.00 | £1,650.00 | £650.00 | £1,980.00 |
Nearby markups
Markup, the margin it gives and the multiplier to use on your cost.
| Markup | Margin | Multiplier |
|---|---|---|
| 45% | 31.03% | × 1.45 |
| 50% | 33.33% | × 1.5 |
| 55% | 35.48% | × 1.55 |
| 60% | 37.5% | × 1.6 |
| 70% | 41.18% | × 1.7 |
| 75% | 42.86% | × 1.75 |
| 80% | 44.44% | × 1.8 |
| 85% | 45.95% | × 1.85 |
Markup is not the same as margin
People often mix these up. A 65% markup is a 39.39% margin. If you actually want a 65% margin, you need a markup of 185.71%, so the price is cost × 2.8571.
How far you can discount
With a 65% markup you can take up to 39.39% off the selling price before you are selling at cost. A 10% discount leaves a margin of 32.66%, and 20% off leaves 24.24%.
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 × 1.98. The VAT goes to HMRC, so it does not change your 39.39% 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 61p. After a 10% discount you would need to sell about 34% 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 25.61 percentage points below the markup. On a £100 cost, pricing for a true 65% margin would mean charging £285.71 instead of £165.00. Another 10 points of markup would add 3.46 percentage points of margin.
Other markups
- 50% markup (33.33% margin)
- 55% markup (35.48% margin)
- 60% markup (37.5% margin)
- 70% markup (41.18% margin)
- 75% markup (42.86% margin)
- 80% markup (44.44% margin)
Common questions
What margin is a 65% markup?
39.39%. Divide the markup by 100 plus the markup: 65 ÷ 165 = 39.39%.
How do I add a 65% markup to a price?
Multiply the cost by 1.65. For example, £40 × 1.65 = £66.00. In Excel or Google Sheets, with the cost in A2, use =A2*1.65.
What is a 65% markup on £100?
£65 of profit, so the selling price is £165.00 before VAT, or £198.00 with 20% VAT added.
How do I work out the cost from a price with a 65% markup?
Divide the selling price by 1.65. A price of £60 means a cost of £36.36. 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.