Pricing · markup guide
80% markup: margin and selling price
A 80% markup means the selling price is your cost plus 80% of that cost, so you multiply the cost by 1.8. It gives a profit margin of 44.44%, because the profit is measured against the higher selling price. An item that costs £100 sells for £180.00 and makes £80.00 profit.
VAT rate checked against GOV.UK on .
Profit margin
44.44%
from a 80% markup
Multiply cost by
1.8
to get the price ex VAT
Price on £100 cost
£180.00
before VAT
With 20% VAT
× 2.16
cost to shelf price
Selling prices with a 80% 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 | £1.80 | £0.80 | £2.16 |
| £5.00 | £9.00 | £4.00 | £10.80 |
| £10.00 | £18.00 | £8.00 | £21.60 |
| £25.00 | £45.00 | £20.00 | £54.00 |
| £50.00 | £90.00 | £40.00 | £108.00 |
| £100.00 | £180.00 | £80.00 | £216.00 |
| £250.00 | £450.00 | £200.00 | £540.00 |
| £1,000.00 | £1,800.00 | £800.00 | £2,160.00 |
Nearby markups
Markup, the margin it gives and the multiplier to use on your cost.
| Markup | Margin | Multiplier |
|---|---|---|
| 60% | 37.5% | × 1.6 |
| 65% | 39.39% | × 1.65 |
| 70% | 41.18% | × 1.7 |
| 75% | 42.86% | × 1.75 |
| 85% | 45.95% | × 1.85 |
| 90% | 47.37% | × 1.9 |
| 95% | 48.72% | × 1.95 |
| 100% | 50% | × 2 |
Markup is not the same as margin
People often mix these up. A 80% markup is a 44.44% margin. If you actually want a 80% margin, you need a markup of 400%, so the price is cost × 5.
How far you can discount
With a 80% markup you can take up to 44.44% off the selling price before you are selling at cost. A 10% discount leaves a margin of 38.27%, and 20% off leaves 30.56%.
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 × 2.16. The VAT goes to HMRC, so it does not change your 44.44% 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 56p. After a 10% discount you would need to sell only about 29% 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 35.56 percentage points below the markup. On a £100 cost, pricing for a true 80% margin would mean charging £500.00 instead of £180.00. Another 10 points of markup would add only 2.92 percentage points of margin, because each extra point counts for less as the price climbs.
Other markups
- 65% markup (39.39% margin)
- 70% markup (41.18% margin)
- 75% markup (42.86% margin)
- 85% markup (45.95% margin)
- 90% markup (47.37% margin)
- 95% markup (48.72% margin)
Common questions
What margin is a 80% markup?
44.44%. Divide the markup by 100 plus the markup: 80 ÷ 180 = 44.44%.
How do I add a 80% markup to a price?
Multiply the cost by 1.8. For example, £40 × 1.8 = £72.00. In Excel or Google Sheets, with the cost in A2, use =A2*1.8.
What is a 80% markup on £100?
£80 of profit, so the selling price is £180.00 before VAT, or £216.00 with 20% VAT added.
How do I work out the cost from a price with a 80% markup?
Divide the selling price by 1.8. A price of £60 means a cost of £33.33. 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.