Markup Calculator South Africa

Markup is the amount added to the cost price of a product or service to determine the selling price. It is expressed as a percentage of the cost price. For example, if a product costs R100 and you apply a 50% markup, the selling price is R150.

Markup is calculated as a percentage of cost, while margin is calculated as a percentage of selling price. A product bought for R100 and sold for R150 has a 50% markup but only a 33.3% margin. Markup is always larger than or equal to the corresponding margin.

Use the formula: Markup = Margin / (1 - Margin). For example, a 30% margin means Markup = 0.30 / (1 - 0.30) = 0.4286 or 42.9%. The conversion table on this page shows common conversions.

The right markup depends on your industry, overhead costs, competition, and desired profit. Retail typically uses 30-50%, restaurants 60-300% on food, and professional services 100-500% on direct labour costs. Your markup must cover all operating expenses and leave room for net profit.

Yes. A 100% markup means you are selling the item for double its cost. Many industries regularly use markups above 100%. For example, jewellery and beverages often have markups of 200-400%. A 100% markup corresponds to a 50% gross margin.