Pricing · markup guide
90% markup: margin and selling price
A 90% markup means the selling price is your cost plus 90% of that cost, so you multiply the cost by 1.9. It gives a profit margin of 47.37%, because the profit is measured against the higher selling price. An item that costs £100 sells for £190.00 and makes £90.00 profit.
VAT rate checked against GOV.UK on .
Profit margin
47.37%
from a 90% markup
Multiply cost by
1.9
to get the price ex VAT
Price on £100 cost
£190.00
before VAT
With 20% VAT
× 2.28
cost to shelf price
Selling prices with a 90% 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 | £1.90 | £0.90 | £2.28 |
| £5.00 | £9.50 | £4.50 | £11.40 |
| £10.00 | £19.00 | £9.00 | £22.80 |
| £25.00 | £47.50 | £22.50 | £57.00 |
| £50.00 | £95.00 | £45.00 | £114.00 |
| £100.00 | £190.00 | £90.00 | £228.00 |
| £250.00 | £475.00 | £225.00 | £570.00 |
| £1,000.00 | £1,900.00 | £900.00 | £2,280.00 |
Nearby markups
Markup, the margin it gives and the multiplier to use on your cost.
| Markup | Margin | Multiplier |
|---|---|---|
| 70% | 41.18% | × 1.7 |
| 75% | 42.86% | × 1.75 |
| 80% | 44.44% | × 1.8 |
| 85% | 45.95% | × 1.85 |
| 95% | 48.72% | × 1.95 |
| 100% | 50% | × 2 |
Markup is not the same as margin
People often mix these up. A 90% markup is a 47.37% margin. If you actually want a 90% margin, you need a markup of 900%, so the price is cost × 10.
How far you can discount
With a 90% markup you can take up to 47.37% off the selling price before you are selling at cost. A 10% discount leaves a margin of 41.52%, and 20% off leaves 34.21%.
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 × 2.28. The VAT goes to HMRC, so it does not change your 47.37% 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 53p. After a 10% discount you would need to sell only about 27% 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 42.63 percentage points below the markup. On a £100 cost, pricing for a true 90% margin would mean charging £1,000.00 instead of £190.00. Another 10 points of markup would add only 2.63 percentage points of margin, because each extra point counts for less as the price climbs.
Other markups
- 75% markup (42.86% margin)
- 80% markup (44.44% margin)
- 85% markup (45.95% margin)
- 95% markup (48.72% margin)
- 100% markup (50% margin)
- 120% markup (54.55% margin)
Common questions
What margin is a 90% markup?
47.37%. Divide the markup by 100 plus the markup: 90 ÷ 190 = 47.37%.
How do I add a 90% markup to a price?
Multiply the cost by 1.9. For example, £40 × 1.9 = £76.00. In Excel or Google Sheets, with the cost in A2, use =A2*1.9.
What is a 90% markup on £100?
£90 of profit, so the selling price is £190.00 before VAT, or £228.00 with 20% VAT added.
How do I work out the cost from a price with a 90% markup?
Divide the selling price by 1.9. A price of £60 means a cost of £31.58. 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.