What markup should I use for my business?

Retail businesses typically use 40–100% markup; wholesale 20–40%; services vary widely. Your markup must cover all overhead costs and deliver a net profit after expenses.

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Markup Calculator

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Cost Price (£)

Markup (%)

How to Use

Enter the cost price and desired markup percentage to calculate the selling price, gross profit, and gross margin. Markup and margin are often confused — markup is profit as a percentage of cost, while margin is profit as a percentage of the selling price. A 40% markup results in a 28.6% margin. Use the VAT calculator alongside this to ensure your pricing accounts for any VAT that needs to be added.

Frequently Asked Questions

❓ Frequently Asked Questions

Markup is profit divided by cost. Margin is profit divided by selling price. A 50% markup equals a 33.3% margin — they are not interchangeable.

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