Pricing · markup guide
70% markup: margin and selling price
A 70% markup means the selling price is your cost plus 70% of that cost, so you multiply the cost by 1.7. It gives a profit margin of 41.18%, because the profit is measured against the higher selling price. An item that costs £100 sells for £170.00 and makes £70.00 profit.
VAT rate checked against GOV.UK on .
Profit margin
41.18%
from a 70% markup
Multiply cost by
1.7
to get the price ex VAT
Price on £100 cost
£170.00
before VAT
With 20% VAT
× 2.04
cost to shelf price
Selling prices with a 70% 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 | £1.70 | £0.70 | £2.04 |
| £5.00 | £8.50 | £3.50 | £10.20 |
| £10.00 | £17.00 | £7.00 | £20.40 |
| £25.00 | £42.50 | £17.50 | £51.00 |
| £50.00 | £85.00 | £35.00 | £102.00 |
| £100.00 | £170.00 | £70.00 | £204.00 |
| £250.00 | £425.00 | £175.00 | £510.00 |
| £1,000.00 | £1,700.00 | £700.00 | £2,040.00 |
Nearby markups
Markup, the margin it gives and the multiplier to use on your cost.
| Markup | Margin | Multiplier |
|---|---|---|
| 50% | 33.33% | × 1.5 |
| 55% | 35.48% | × 1.55 |
| 60% | 37.5% | × 1.6 |
| 65% | 39.39% | × 1.65 |
| 75% | 42.86% | × 1.75 |
| 80% | 44.44% | × 1.8 |
| 85% | 45.95% | × 1.85 |
| 90% | 47.37% | × 1.9 |
Markup is not the same as margin
People often mix these up. A 70% markup is a 41.18% margin. If you actually want a 70% margin, you need a markup of 233.33%, so the price is cost × 3.3333.
How far you can discount
With a 70% markup you can take up to 41.18% off the selling price before you are selling at cost. A 10% discount leaves a margin of 34.64%, and 20% off leaves 26.47%.
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 × 2.04. The VAT goes to HMRC, so it does not change your 41.18% margin.
Profit in each pound of sales
Gross profit is just over two fifths of each pound you take before VAT, and the goods cost you the other 59p. After a 10% discount you would need to sell about 32% 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 28.82 percentage points below the markup. On a £100 cost, pricing for a true 70% margin would mean charging £333.33 instead of £170.00. Another 10 points of markup would add 3.27 percentage points of margin.
Other markups
- 55% markup (35.48% margin)
- 60% markup (37.5% margin)
- 65% markup (39.39% margin)
- 75% markup (42.86% margin)
- 80% markup (44.44% margin)
- 85% markup (45.95% margin)
Common questions
What margin is a 70% markup?
41.18%. Divide the markup by 100 plus the markup: 70 ÷ 170 = 41.18%.
How do I add a 70% markup to a price?
Multiply the cost by 1.7. For example, £40 × 1.7 = £68.00. In Excel or Google Sheets, with the cost in A2, use =A2*1.7.
What is a 70% markup on £100?
£70 of profit, so the selling price is £170.00 before VAT, or £204.00 with 20% VAT added.
How do I work out the cost from a price with a 70% markup?
Divide the selling price by 1.7. A price of £60 means a cost of £35.29. 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.