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Markup calculator

Markup is the percentage you add to your cost to get the selling price. Put in the cost and the markup you want and see the price, the rand you make on each sale and the return as a margin. Or put in a cost and a price to find the markup you are already getting. Use prices without VAT. Nothing you enter leaves this page.

Pick one. The fields below change to match.
What the item or job costs you, without VAT.
What you charge, without VAT.
As a percentage of the selling price.
Cost price
Selling price
Gross margin
Markup on cost
Selling price including 15% VAT
Profit per sale

What the markup percentage really returns

A markup is worked out on the cost. Buy for R100, add a 50% markup, and you sell for R150. The return on that sale is R50, which is 50% of what you put in but only 33% of what the customer paid. That second number, the margin, is what your accountant, your bank and a tender scorer look at.

Bigger markups shrink faster than people expect. A 100% markup is a 50% margin. A 25% markup is a 20% margin. If a supplier price goes up 10% and you keep the same rand markup, your margin drops even though nothing else changed, so re-run this every time your costs move.

To price for a margin instead, divide the cost by one minus the margin. For 40% on a R100 cost: R100 divided by 0.6 is R166.67, which is a 66.7% markup. The third option above does that sum for you.

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Frequently asked questions

Is a 100% markup the same as doubling my money?

Yes on the cost, no on the price. R100 marked up 100% sells for R200. You make R100, which is 100% of the cost but 50% of the selling price. Say markup when you talk to suppliers and margin when you talk to the bank.

What markup should I use?

Enough that the gross profit across a month covers rent, salaries, fuel, bank charges and your own pay, with something left. Work backwards: add up those monthly costs, divide by the sales you expect, and that is the minimum margin. Convert it to a markup with the third option on this page.

Do I add the markup before or after VAT?

Before. Work out the selling price on the cost excluding VAT, then add 15% VAT on top if you are a registered vendor. The calculator shows the VAT-inclusive price for you.

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Arithmetic only. Markup is profit over cost; margin is profit over selling price. VAT at 15% shown for reference.