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Markup Calculator | US
Markup Calculator is designed to help you pressure-test margins, pricing, costs, and cash-flow assumptions before you commit. It works best when you want a fast, comparable estimate before you speak to a lender, provider, adviser, employer, or supplier. Use it as a planning tool rather than a final quote. This version is framed for United States users where regional assumptions matter, so you can test a few scenarios and see how changes in the main inputs affect the outcome.
Interpretation
What your result means
Use the notes below to understand the main figures in your result and when this calculator is most useful.
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.
Result
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Next steps
What to do next
Continue with the most relevant next step based on your result.
Example
A realistic US planning example
A realistic example to help you understand how the numbers fit together.
Cost Price (£)
$0.30
Markup (%)
30
After entering these figures, focus on result first and then rerun the tool with a more cautious assumption.
Avoid mistakes
Common mistakes
A few things that often lead to misleading or incomplete results.
FAQ
Frequently asked questions
Helpful answers to common questions about this calculator.
What is the difference between markup and margin?
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.
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.
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