iHow it is calculated
The selling price is found by adding the markup to the cost:
price = cost × (1 + markup ÷ 100)
At a cost of £100 with a 30% markup: price excl. VAT = £130 (with 20% VAT = £156).
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Business & Commerce · Updated 2026
Markup Calculator
Find the selling price from the cost and the applied markup, with or without 20% VAT.
Enter your data
£
%
Enter the cost and the markup. Choose whether to add 20% VAT for the final price.
=Price excl. VAT
130£
Cost100 £
Markup 30%+30 £
Price excl. VAT130 £
Price excl. VAT130 £
Markup is applied to the cost to get the selling price. Add 20% VAT for the final shelf price.
Purchase cost 100 + 30% = 130 £Real-estate and business calculations. Standard formulas for commissions, price per m², margins and markups. Instant in-browser calculation, no account, no data sent. Last updated: 11 July 2026 · gov.uk: VAT rates.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
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?Frequently asked questions
What is markup?
Markup is the percentage added to the purchase cost to get the selling price. It is measured against the cost, unlike margin, which is measured against the price.
How is markup calculated?
Multiply the cost by (1 + markup/100). For example, at a cost of £100 with a 30% markup: 100 × 1.30 = £130 selling price excl. VAT.
What is the difference between markup and margin?
Markup is measured against the cost, margin against the selling price. A 30% markup on a cost of £100 gives a price of £130 and a margin of 23%. Markup is always higher than margin.
How do I set the selling price?
Start from the cost, add the markup (covering expenses and profit), and if you are VAT-registered, add VAT at the end for the shelf price.
What markup should I use?
The markup must cover operating costs, a reasonable profit and stay competitive with the market. It varies widely: small in volume retail, large for niche products.
Is markup applied before or after VAT?
Markup is applied to the cost excluding VAT, giving the net selling price. VAT at 20% is added only at the end, on the net price, to get the shelf price with VAT.
How do I convert markup to margin?
Margin = markup ÷ (1 + markup/100). A 50% markup means a margin of 0.5 ÷ 1.5 = 33%. Conversely, markup = margin ÷ (1 − margin/100).
Can markup exceed 100%?
Yes. Unlike margin, markup has no upper limit. For products with a low cost and high perceived value, markup can be several hundred percent.
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