Markup Calculator
Enter your cost price and desired markup to calculate the selling price, or enter a selling price to find the markup percentage and profit margin.
What should you charge? Whether you are pricing products, setting freelance rates, or working out wholesale margins, this calculator helps you find the right selling price.
Factor in VAT, platform fees, delivery costs, and discounts to see your true profit.
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What this calculator does
This calculator works out selling price from cost + markup, or calculates markup from cost + selling price. It shows both markup percentage and profit margin, and can factor in VAT, platform fees, delivery costs, and discounts.
Who it is for
Small business owners, retailers, Etsy/Amazon sellers, freelancers, and anyone who needs to price products or services profitably.
How to use it
Select your calculation mode, enter your cost price, and either a markup percentage, selling price, or target profit. Optionally add VAT, platform fees, delivery costs, and discounts to see the full picture.
How the calculation works
Markup % = (profit ÷ cost) × 100. Margin % = (profit ÷ selling price) × 100. Selling price = cost × (1 + markup/100). Effective profit accounts for platform fees, delivery costs, and discounts deducted from the selling price.
Worked example
Cost price £10 with 50% markup: Selling price = £15. Gross profit = £5. Margin = 33.3%. With 20% VAT: price inc. VAT = £18. With a 10% discount and 3% platform fee: effective profit = £3.15 (31.5% effective markup).
Assumptions and limitations
- VAT calculated at standard UK rate of 20%
- Platform fees are applied after any discount
- Does not account for volume discounts or tiered pricing
- Delivery cost is treated as a fixed cost deducted from revenue
Frequently asked questions
What is the difference between markup and margin?
Markup is profit as a percentage of cost (e.g. £5 profit on £10 cost = 50% markup). Margin is profit as a percentage of selling price (£5 on £15 selling price = 33.3% margin). Same profit, different percentages.
What is a good markup for retail?
Retail markup varies widely. Clothing typically uses 100–300% (keystone to triple). Food and drink is often 50–100%. Electronics may be 10–30%. The right markup depends on your market, competition, and costs.
Should I include VAT in my selling price?
If you are VAT-registered (required when turnover exceeds £90,000), you must charge VAT on most goods and services. B2C prices are usually shown inclusive of VAT. B2B prices are often shown exclusive of VAT.
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Related guides
- Markup vs Margin Explained — Understand the difference between markup and margin, why it matters, and how to use each when pricing your products.
- How PayPal Fees Affect Your Pricing — Understand how PayPal transaction fees work and how to factor them into your pricing strategy.
- How Holiday Pay Is Calculated in the UK — A guide to understanding your holiday pay entitlement, including regular workers, part-time, and zero-hours contracts.
- Inside vs Outside IR35 Explained — Understand the difference between inside and outside IR35, and how it affects your take-home pay as a contractor.
- Understanding Etsy Fees for UK Sellers — A complete breakdown of every fee Etsy charges UK sellers, with strategies to price profitably.
- How to Calculate ROI on Any Investment — A practical guide to calculating return on investment for marketing, property, stocks, and business decisions.
Sources and references
VAT rates (https://www.gov.uk/vat-rates), VAT registration threshold (https://www.gov.uk/vat-registration/when-to-register)
Last updated
Last reviewed: 2025-04-12.