Markup calculator, in rands
Put in your cost and the markup you add, and get the selling price. Or put in a price you already charge and see what markup it really is, with the margin beside it.
What the item or job costs you: stock, materials, labour. Rands; spaces and commas are fine.
Leave it empty to work out a price from a target markup instead.
Used with the cost price to suggest a selling price.
Enter a cost price, and either a selling price or a target markup. The answer appears here.
Margin is profit as a share of the selling price. Markup is profit as a share of cost. A 50% markup is a 33.33% margin, which is why pricing with one and reading accounts in the other goes wrong.
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Most South African trade counters, contractors and retailers price by marking up cost. Their accounts report margin. The two numbers are not the same, and a 25% markup is only a 20% margin.
Mark up the cost excluding VAT, then add VAT to the result if you are a VAT vendor. Marking up a VAT-inclusive cost charges your customer markup on the VAT.
Questions owners ask
- How do I calculate markup?
- Subtract the cost from the selling price, divide by the cost and multiply by 100. An item that costs R800 and sells for R1 200 has a 50% markup.
- How do I add a markup to a cost price?
- Multiply the cost by 1 plus the markup. A 40% markup on R500 is R500 x 1.4, a selling price of R700.
- Is a 50% markup a 50% profit margin?
- No. A 50% markup gives a 33.33% margin, because margin divides the same profit by the bigger number, the selling price.
Reading your margin instead? Use the profit margin calculator. Then put the price on a quotation.
See it on your business.
We build a version around what you sell and how you quote it, and show you it working. No paid audit, no obligation.