Markup Calculator South Africa
Calculate selling price from cost price and markup percentage
This calculator provides estimates only. Actual pricing should consider market conditions, competition, and overhead costs.
Frequently Asked Questions
What is markup?
Markup is the amount added to the cost price to determine the selling price, expressed as a percentage of the cost price. A 50% markup on R100 costs adds R50.
How is markup different from margin?
Markup is calculated on the cost price; margin is calculated on the selling price. 50% markup on R100 = R150 selling price (33.3% margin). 50% margin on R100 cost = R200 selling price (100% markup).
What is a standard markup in South Africa?
Standard markups vary by industry: grocery 20-35%, restaurants 60-300%, clothing 50-200%, electronics 15-40%, services 50-200%.
Should I include VAT in my markup calculation?
No. Calculate markup on VAT-exclusive cost prices. Add VAT afterwards. If you're VAT-registered, your cost is VAT-exclusive.
How do I set the right markup for my product?
Consider your costs (not just product cost, but overhead), competitor pricing, perceived value, and target market. A common approach is cost-plus pricing with a target margin.
What is keystone markup?
Keystone markup is 100% — you sell at double the cost price. This gives a 50% profit margin and is common in retail.
How do I convert markup to margin?
Margin = Markup ÷ (100 + Markup) × 100. Example: 50% markup = 50 ÷ 150 × 100 = 33.3% margin.
How do I convert margin to markup?
Markup = Margin ÷ (100 − Margin) × 100. Example: 33.3% margin = 33.3 ÷ 66.7 × 100 = 50% markup.
This calculator provides estimates only. Actual pricing should consider market conditions, competition, and overhead costs.
How the markup calculator works
Markup is the percentage added to cost to reach the selling price: selling price = cost × (1 + markup).
A R60,00 item with a 50% markup sells at R90,00. That is a profit of R30,00, which is a margin of R30,00 ÷ R90,00 = 33,3%, not 50%.
Going backwards from a price, markup = (price − cost) ÷ cost. Confusing the two is the single most common pricing error in small South African businesses.
What changes the answer in South Africa
Markup should be applied to the cost excluding VAT, and the VAT added afterwards. In sectors with recommended retail prices or fixed margins — fuel, medicines, liquor — the permitted markup is regulated, so check before setting a price.
Common questions about the markup calculator
Is a 50% markup the same as a 50% margin?
No. A 50% markup gives a 33,3% margin. To achieve a 50% margin you need a 100% markup.
What markup should I use?
Enough to cover overheads as well as the cost of the goods. A 30% markup on a product whose overheads are 25% of sales leaves almost nothing.
Does markup include delivery?
It should. Landed cost — goods plus freight, duty and clearing — is the cost the markup must be applied to, or the margin disappears in the delivery.