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.

← Back to Calculators

Markup Calculator

Enter your values

Cost Price (R)

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.

🔗 Related Calculators

💼

Profit Margin CalculatorCalculate gross profit, profit margin percentage, and markup for …

💼

VAT CalculatorAdd or remove VAT or sales tax from any amount. Works for any tax…

💼

Break-Even CalculatorCalculate break-even point in units and revenue for your business…

Related Guides

Profit Margin Guide: How to Calculate & Improve Margins

Understand gross, net, and operating profit margins, learn how to calculate them, compare industry benchmarks, and discover strategies to improve your margins.

8 min read

Pricing Strategy Guide: How to Price Your Products

Learn different pricing strategies including cost-plus, value-based, and competitive pricing. Choose the right approach to maximise profit for your business.

7 min read