Step 1
Set Your Markup
Enter what you paid and the percentage you want to add to that cost.
Enter the direct cost of the goods or services you want to price.
For example, enter 50 for a 50% markup on your cost.
Step 2
Your Results
Enter your cost and markup percentage above.
Your markup amount, selling price and margin will appear here automatically.
Step 3
Markup vs. Profit Margin
Markup and profit margin are related, but they are not the same percentage.
Markup
Markup measures how much you add to your cost to determine your selling price.
Markup = Markup Amount ÷ Cost × 100
Profit Margin
Profit margin measures your gross profit as a percentage of your selling price.
Margin = Gross Profit ÷ Selling Price × 100
Example
Imagine you buy goods for 380,000 TZS and want to add a 50% markup.
Cost
TZS 380,000
50% Markup
TZS 190,000
Selling Price
TZS 570,000
Profit Margin
33.33%
Notice that a 50% markup results in a 33.33% gross profit margin. The two percentages use different bases for their calculation.
Important Information
This calculator shows the selling price based on the direct cost and markup percentage you enter. Gross profit shown here does not account for operating expenses such as salaries, rent, utilities, financing costs, taxes or other business expenses. Actual pricing decisions may also need to consider market conditions, competition, VAT and other applicable costs. This tool is provided for informational purposes and is not professional accounting, tax, legal or financial advice.