Markup Calculator

Calculate the right selling price from your cost and markup percentage, or work out your markup from known prices.

Cost & Desired Markup

Cost Price

₦

Desired Markup

Selling Price

₦7,000

Profit per Unit

₦2,000

Profit Margin %

28.6%

Cost Price

₦5,000

How to Use This Calculator

Cost to Price Tab

Enter your cost price (what you pay to buy or produce an item) and your desired markup percentage. The calculator shows the selling price, profit per unit, and the equivalent profit margin percentage.

Price to Markup Tab

Already know your selling price? Enter your cost and selling price to find out what markup percentage you are applying and what your actual profit margin is.

The Formula

Selling Price = Cost × (1 + Markup% ÷ 100) Profit per Unit = Selling Price − Cost Profit Margin % = Profit ÷ Selling Price × 100 Reverse: Markup % = (Selling Price − Cost) ÷ Cost × 100

Note: Markup % is always higher than Margin %. A 40% markup gives a 28.6% margin. A 100% markup (doubling your price) gives a 50% margin, not 100%.

Example

Lagos Market Trader

Cost Price (wholesale)₦5,000

Desired Markup40%

Selling Price₦7,000

Profit per Unit₦2,000

Profit Margin %28.6%

Common Nigerian retail markups: groceries 15–30%, electronics 20–40%, fashion 50–100%, cosmetics 50–150%. Use the reverse calculator to check if your current pricing gives you enough margin after expenses.

FAQ

Typical Nigerian retail markups by category: FMCG/groceries 15–30%, electronics and phones 15–35%, fashion and clothing 50–100%, shoes 40–80%, cosmetics and beauty 60–150%, building materials 20–40%, pharmaceuticals 30–50%. Check your industry benchmark and ensure your markup covers not just cost of goods but also overhead (rent, staff, generator fuel, logistics).

Because markup is calculated on cost while margin is calculated on price. If you pay ₦5,000 and sell for ₦7,000: markup = ₦2,000 ÷ ₦5,000 = 40%, but margin = ₦2,000 ÷ ₦7,000 = 28.6%. The higher your markup, the bigger the gap. At 100% markup, margin is only 50%. Always verify your pricing gives sufficient net margin after overhead.

Use the formula: Markup % = Target Margin % ÷ (1 − Target Margin%). For a 30% target margin: Markup = 0.30 ÷ 0.70 = 42.9%. For 50% margin: Markup = 0.50 ÷ 0.50 = 100%. For 40% margin: Markup = 0.40 ÷ 0.60 = 66.7%. Use our calculator to verify by entering cost and the computed markup.