How do I calculate markup percentage?

Markup percentage is calculated as (Selling Price - Cost Price) / Cost Price x 100. For example, if an item costs £40 and sells for £60, the markup is 50%.

What is a typical markup for UK retail businesses?

UK retail markups vary widely by industry. Clothing often uses 100-300% markup, food retail around 25-50%, and electronics typically 10-30%. The right markup depends on your market and overheads.

How does VAT affect markup calculations?

In the UK, VAT at 20% is added on top of your selling price. Calculate your markup on the ex-VAT price first, then add VAT separately to avoid squeezing your profit margin.

Markup Calculator Ireland (Revenue 2025)

Markup Calculator · IEBusiness

Cost Price (£)

Markup (%)

Rates & sources

UK company rates (Corporation Tax, VAT, payroll NI) as published by HMRC and Companies House.

Source: HMRC — Running a business — figures refreshed at the start of each tax year.

When to use this calculator

Before pricing a job, setting margin targets, or reviewing hiring costs.
When you want to test sensitivity around volume, VAT, markup, or overhead changes.
When you need a practical estimate before committing to a budget or proposal.

A realistic Ireland planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Cost Price (£)

€0.30

Markup (%)

After entering these figures, focus on result first and then rerun the tool with a more cautious assumption.

How to read your results

Result

Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.

Common mistakes

!Using optimistic assumptions without testing a more cautious scenario as well.
!Comparing outputs from different tools without checking that the inputs match.
!Treating the result as a final quote instead of a planning estimate.

What to do next

Try at least one more scenario so you can compare a realistic range instead of a single estimate.
Use the related calculators below to cross-check the decision from another angle.
Open one of the linked guides if you need more context before you act on the result.

Frequently asked

Markup is the percentage added to cost price to get the selling price, while margin is the percentage of the selling price that is profit. A 50% markup equals a 33.3% margin.

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