Markup Calculator

Work out a selling price from your cost and markup, find the markup you need for a target margin, and see prices with and without 20% VAT.

Reviewed by Dany, RightSums team · Updated

Runs in your browser. Free, no sign-up.

finance · Business · UK & US

Enter what an item costs you and the markup you want, and the calculator gives the selling price, the profit per item and the profit margin. You can also start from the margin you want and get the markup and price that deliver it, or enter a cost and price you already have to see the markup and margin. UK prices can be shown with 20% VAT added.

Accepted inputs

  • Cost price
  • Markup %
  • Target margin %
  • Selling price
  • VAT on or off

Outputs

  • Selling price
  • Profit per item
  • Markup %
  • Profit margin %
  • Price with VAT

How to use the Markup Calculator

  1. Choose what you know: your markup, the margin you want, or both the cost and the selling price.
  2. Enter the cost price, before any VAT you can reclaim.
  3. Enter the markup, target margin or selling price.
  4. Read off the selling price, profit per item, markup and margin. Tick the VAT box to see the price your customer pays.

Frequently asked questions

What is the difference between markup and margin?

Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. An item that costs £40 and sells for £60 makes £20 profit, which is a 50% markup but a 33.33% margin.

How do I calculate markup?

Take the selling price away from the cost to get the profit, divide the profit by the cost and multiply by 100. Selling a £40 item for £60 gives £20 ÷ £40 × 100 = 50% markup.

How do I add a markup to a cost?

Multiply the cost by 1 plus the markup as a decimal. For a 30% markup, multiply by 1.3, so a £50 cost becomes a £65 selling price.

What markup do I need for a 30% margin?

About 42.86%. To turn a margin into a markup, divide the margin by 100 minus the margin: 30 ÷ 70 × 100 = 42.86%. A 50% margin needs a 100% markup.

Should I add VAT before or after the markup?

After. Work out your selling price from your cost before VAT, then add 20% VAT on top if you are VAT registered and the item is standard-rated. VAT goes to HMRC, so it does not count towards your profit.

Markup to margin, worked examples

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