Pricing · markup guide
75% markup: margin and selling price
A 75% markup means the selling price is your cost plus 75% of that cost, so you multiply the cost by 1.75. It gives a profit margin of 42.86%, because the profit is measured against the higher selling price. An item that costs £100 sells for £175.00 and makes £75.00 profit.
VAT rate checked against GOV.UK on .
Profit margin
42.86%
from a 75% markup
Multiply cost by
1.75
to get the price ex VAT
Price on £100 cost
£175.00
before VAT
With 20% VAT
× 2.1
cost to shelf price
Selling prices with a 75% 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 | £1.75 | £0.75 | £2.10 |
| £5.00 | £8.75 | £3.75 | £10.50 |
| £10.00 | £17.50 | £7.50 | £21.00 |
| £25.00 | £43.75 | £18.75 | £52.50 |
| £50.00 | £87.50 | £37.50 | £105.00 |
| £100.00 | £175.00 | £75.00 | £210.00 |
| £250.00 | £437.50 | £187.50 | £525.00 |
| £1,000.00 | £1,750.00 | £750.00 | £2,100.00 |
Nearby markups
Markup, the margin it gives and the multiplier to use on your cost.
| Markup | Margin | Multiplier |
|---|---|---|
| 55% | 35.48% | × 1.55 |
| 60% | 37.5% | × 1.6 |
| 65% | 39.39% | × 1.65 |
| 70% | 41.18% | × 1.7 |
| 80% | 44.44% | × 1.8 |
| 85% | 45.95% | × 1.85 |
| 90% | 47.37% | × 1.9 |
| 95% | 48.72% | × 1.95 |
Markup is not the same as margin
People often mix these up. A 75% markup is a 42.86% margin. If you actually want a 75% margin, you need a markup of 300%, so the price is cost × 4.
How far you can discount
With a 75% markup you can take up to 42.86% off the selling price before you are selling at cost. A 10% discount leaves a margin of 36.51%, and 20% off leaves 28.57%.
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 × 2.1. The VAT goes to HMRC, so it does not change your 42.86% margin.
Profit in each pound of sales
Gross profit is between two fifths and half of each pound you take before VAT, and the goods cost you the other 57p. After a 10% discount you would need to sell about 30% 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 32.14 percentage points below the markup. On a £100 cost, pricing for a true 75% margin would mean charging £400.00 instead of £175.00. Another 10 points of markup would add 3.09 percentage points of margin.
Other markups
- 60% markup (37.5% margin)
- 65% markup (39.39% margin)
- 70% markup (41.18% margin)
- 80% markup (44.44% margin)
- 85% markup (45.95% margin)
- 90% markup (47.37% margin)
Common questions
What margin is a 75% markup?
42.86%. Divide the markup by 100 plus the markup: 75 ÷ 175 = 42.86%.
How do I add a 75% markup to a price?
Multiply the cost by 1.75. For example, £40 × 1.75 = £70.00. In Excel or Google Sheets, with the cost in A2, use =A2*1.75.
What is a 75% markup on £100?
£75 of profit, so the selling price is £175.00 before VAT, or £210.00 with 20% VAT added.
How do I work out the cost from a price with a 75% markup?
Divide the selling price by 1.75. A price of £60 means a cost of £34.29. 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.