About this calculator
A markup calculator turns a cost figure plus a markup percentage into a selling price. Enter the cost of an item and the markup you want to apply, and the calculator returns the selling price along with the profit per unit.
Markup is calculated on cost. A 50% markup on a R100 cost gives a R50 profit and a R150 selling price. Note that this is different from margin, which is profit as a percentage of revenue: the same R50 profit on R150 revenue is a 33.3% margin. Retailers habitually confuse the two, so if you're comparing pricing between suppliers, always confirm which measure they're quoting.
Typical markups vary widely by industry in South Africa. Grocery retailers might run 15–30% markups; independent fashion boutiques often price at 100–200%; restaurant drink markups regularly hit 300–400%. Setting the right markup starts from your target margin, your break-even volume (see our Break-even Calculator) and what customers will actually pay in your market segment.
How to use it
- 1Enter the cost. The unit cost including landed cost, freight and duties.
- 2Enter the markup percentage. The percentage above cost you want to charge.
- 3Read the selling price. The recommended price to the customer.
- 4Read the profit per unit. The Rand profit built into the price.