PayoutMath
Seller Pricing

Markup Calculator UK (2026)

Markup is profit as a percentage of cost — the multiplier you apply to your cost price to set the retail price. Different from margin (profit as % of revenue). This calculator gives you both, plus the pound-profit per unit.

Last verified: 25 April 2026 Source: GOV.UK — self-employment expenses Next review: 25 October 2026
Inputs
Cost —
Selling price —
Profit —
Markup % —
Profit margin % —
£10 cost, £30 selling price — 200% markup
Cost £10 · Selling price £30

Marked up 200% (3x cost). Same transaction is 66.7% margin. Common range for vintage clothing reselling — the high markup reflects acquisition skill, not pricing greed.

Standard retail double — £15 cost, £30 sale
Cost £15 · Selling price £30

100% markup = ‘doubling’ the cost. 50% margin. Classic retail rule of thumb. Modern e-commerce typically runs lower (because platform fees eat the difference); brick-and-mortar runs higher (to absorb rent and staff).

Razor-thin — £8 cost, £10 sale
Cost £8 · Selling price £10

25% markup, 20% margin. After Vinted’s £0 fee or Depop’s ~13% fee, the remaining margin can vanish entirely. Common trap: buying close to retail and reselling without enough markup to absorb fees.

Markup is the simpler retail-thinking view: “I bought it at X, marked it up Y%, sold at X + Y%·X.” The calculator above gives you the markup percentage along with the matching margin percentage and the pound profit per unit.

Quick conversion

Markup → Margin: - 25% markup = 20% margin - 50% markup = 33% margin - 100% markup (‘keystone’) = 50% margin - 200% markup = 67% margin - 300% markup = 75% margin

Markup is unbounded (can exceed 100%); margin caps at 100%.

When the markup framing wins

Markup makes more sense when you think cost-up: “I paid £10 for this — what should I sell it for?” Multiply by your target markup factor: - 50% markup target: × 1.5 → £15 - 100% markup target: × 2.0 → £20 - 200% markup target: × 3.0 → £30

Margin makes more sense when you think top-down: “the customer paid £25 — what’s my margin?”

Markup floors for sustainable resale

For physical resale on UK platforms, sustainable markup floors approximately:

  • Vinted (no fees): 30%+ markup minimum to absorb returns and unsold stock
  • Depop (~13% fee): 50%+ markup minimum
  • eBay private (negligible fees): 30%+
  • eBay business (~14% fee): 60%+
  • Etsy (~13.5% effective): 60%+ on resold/handmade
  • Amazon FBA: 100%+ (the FBA fee structure is heavy)

Below these floors, fees + returns + unsold stock typically erode margin to break-even or worse.

Cost-plus pricing — where markup wins as the framing

Cost-plus pricing means: cost × markup factor = price. It’s the dominant model in:

  • Reselling (most categories) — buy at sourcing price, mark up to cover platform fees, returns, and a profit margin.
  • Print-on-demand — base cost from Printful/Printify is fixed; you choose the markup; algebra is straightforward.
  • Custom or made-to-order goods — material cost is known upfront; markup decision determines profitability.
  • Wholesale to retail conversion — wholesalers price-up from manufacturer cost; retailers price-up from wholesale cost.

In each case, markup is the natural decision variable because the cost is known first and the price is derived second. Margin-first thinking inverts the decision and is more useful when you’re given a price (e.g., a market-set rate) and need to back-calculate whether your costs leave room.

Markup tiers used in retail tradition

Traditional UK retail uses a small number of standard markup factors:

  • Keystone (100% markup, x2) — historical retail standard, doubles cost to set price.
  • Triple keystone (200% markup, x3) — common in fashion, jewellery, gifts.
  • Quadruple (300% markup, x4) — luxury goods, high-end design objects.
  • 50% markup (x1.5) — fast-moving consumer goods, supermarket staples.
  • 30% markup (x1.3) — high-volume commodity items, electronics resale.

Knowing where your category sits relative to these benchmarks tells you whether your pricing is competitive, premium, or eroding margin. A reseller pricing at 1.3x cost in a triple-keystone category is leaving money on the table; one pricing at 4x in a 50%-markup category is losing customers to competitors.

Common markup mistakes for new resellers

  • Confusing markup with margin — 100% markup is 50% margin. Both correct, both common, frequently mixed up. The calculator above gives you both.
  • Using percentage-of-revenue thinking when the data is cost-side — if you bought at £10 and want “30% margin,” that’s £14.29 selling price, not £13. Three quid difference per item, compounded across 200 items per year.
  • Ignoring the fee stack — your “100% markup” on a £10 cost = £20 sale. After Etsy’s 13.5% fee + £0.20 listing + 20% VAT on fees: real take-home is £16.92. Effective markup on cost is 69%, not 100%.
  • Not reviewing markup quarterly — costs drift, fees change, competition appears. A 100% markup that worked at launch may be unsustainable 18 months later. Re-run the calc each season.

Related

Common mistakes
  • Saying ‘I marked it up 100%’ when meaning ‘I priced at 100% margin.’ Distinct concepts. 100% markup = doubled the cost (50% margin). 100% margin is mathematically impossible for non-zero cost. Be precise.
  • Assuming markup % = profit % of revenue. It’s profit % of cost. £10 cost + 50% markup = £15 sale (50% of £10 = £5 profit; 33% of £15 revenue = £5). The same £5 profit is 50% markup AND 33% margin.
  • Using ‘keystone pricing’ (100% markup) without checking platform fees. Doubling the cost works in physical retail with low overheads. On Etsy at 13.5% effective fee, doubling cost leaves only 36% margin after fees, before tax.
  • Ignoring time/labour cost on low-volume items. A 200% markup on a £5 item is £10 profit. If finding/sourcing/listing/shipping took 30 minutes, that’s £20/hour — meaningful but not retirement-grade. Track effective hourly rate for any time-intensive resale work.
What this calculator doesn't cover
  • Pre-fees, pre-VAT, pre-tax. For platform fees: see the Etsy, eBay, Vinted, or Depop calcs.
  • Doesn’t handle returns or unsold stock — both effectively reduce real markup.
  • Doesn’t include labour cost — track separately if relevant to your decision.
  • VAT not modelled — see margin and VAT calculator for VAT-aware pricing.

Frequently asked questions

What's a typical retail markup?

Wide range. Traditional retail rule of thumb is 100% markup (‘keystone pricing’) on most items, with 200-300% markup on apparel and jewelry. Modern e-commerce runs lower (platform fees compress margins). Resellers on Vinted/eBay often run 50-200% markup depending on category. Vintage and collectibles can hit 500%+ on rare finds.

Markup or margin — which should I use?

Whichever you find more intuitive, just be consistent within any single conversation or document. Retailers often think ‘I bought at X, sold at 2X’ (markup). Accountants often think ‘profit was Y% of revenue’ (margin). The calculator gives both.

Why is markup % usually larger than margin % for the same transaction?

Because cost is always smaller than revenue (when there’s any profit at all). The same £5 profit divides differently: by a £10 cost (50% markup) vs a £15 revenue (33% margin). Larger denominator → smaller percentage.

Does this account for fees and tax?

No — pre-fees, pre-tax. For real take-home, layer this on top of the platform-specific fee calcs and the side hustle tax calculator.

About this calculator. Maintained by Jordan — a UK seller and creator who actually uses these platforms (Etsy, eBay, Vinted, DistroKid). Built to be accurate, mobile-fast, and honest about its limits. Spot a bug? Email hello@payoutmath.co.uk.