Pricing · markup guide
95% markup: margin and selling price
A 95% markup means the selling price is your cost plus 95% of that cost, so you multiply the cost by 1.95. It gives a profit margin of 48.72%, because the profit is measured against the higher selling price. An item that costs £100 sells for £195.00 and makes £95.00 profit.
VAT rate checked against GOV.UK on .
Profit margin
48.72%
from a 95% markup
Multiply cost by
1.95
to get the price ex VAT
Price on £100 cost
£195.00
before VAT
With 20% VAT
× 2.34
cost to shelf price
Selling prices with a 95% 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 | £1.95 | £0.95 | £2.34 |
| £5.00 | £9.75 | £4.75 | £11.70 |
| £10.00 | £19.50 | £9.50 | £23.40 |
| £25.00 | £48.75 | £23.75 | £58.50 |
| £50.00 | £97.50 | £47.50 | £117.00 |
| £100.00 | £195.00 | £95.00 | £234.00 |
| £250.00 | £487.50 | £237.50 | £585.00 |
| £1,000.00 | £1,950.00 | £950.00 | £2,340.00 |
Nearby markups
Markup, the margin it gives and the multiplier to use on your cost.
| Markup | Margin | Multiplier |
|---|---|---|
| 75% | 42.86% | × 1.75 |
| 80% | 44.44% | × 1.8 |
| 85% | 45.95% | × 1.85 |
| 90% | 47.37% | × 1.9 |
| 100% | 50% | × 2 |
Markup is not the same as margin
People often mix these up. A 95% markup is a 48.72% margin. If you actually want a 95% margin, you need a markup of 1,900%, so the price is cost × 20.
How far you can discount
With a 95% markup you can take up to 48.72% off the selling price before you are selling at cost. A 10% discount leaves a margin of 43.02%, and 20% off leaves 35.9%.
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 × 2.34. The VAT goes to HMRC, so it does not change your 48.72% margin.
Profit in each pound of sales
Gross profit is just under half of each pound you take before VAT, and the goods cost you the other 51p. After a 10% discount you would need to sell only about 26% 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 46.28 percentage points below the markup. On a £100 cost, pricing for a true 95% margin would mean charging £2,000.00 instead of £195.00. Another 10 points of markup would add only 2.5 percentage points of margin, because each extra point counts for less as the price climbs.
Other markups
- 80% markup (44.44% margin)
- 85% markup (45.95% margin)
- 90% markup (47.37% margin)
- 100% markup (50% margin)
- 120% markup (54.55% margin)
- 150% markup (60% margin)
Common questions
What margin is a 95% markup?
48.72%. Divide the markup by 100 plus the markup: 95 ÷ 195 = 48.72%.
How do I add a 95% markup to a price?
Multiply the cost by 1.95. For example, £40 × 1.95 = £78.00. In Excel or Google Sheets, with the cost in A2, use =A2*1.95.
What is a 95% markup on £100?
£95 of profit, so the selling price is £195.00 before VAT, or £234.00 with 20% VAT added.
How do I work out the cost from a price with a 95% markup?
Divide the selling price by 1.95. A price of £60 means a cost of £30.77. 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.