Enter what the item cost you and what you sell it for. We'll work out your profit, GP% and markup%.
R
R
Profit per unit
—
Enter cost and selling price
GP %
—
profit ÷ selling price
Markup %
—
profit ÷ cost
Enter your cost and the margin you want to hit. We'll tell you what to charge.
R
%
Selling price
—
Enter cost and target margin
Profit per unit
—
selling price − cost
Markup %
—
equivalent markup
!
GP vs Markup — the confusion that kills SA retail margins
Two phrases, same rand value, two very different percentages. This one confusion quietly damages more SME margins than almost anything else.
GP% is profit as a share of the selling price. Markup% is profit as a share of the cost. The rand profit is identical — but the percentage you call it depends on what you divide by.
The R 50 000 mistake
You buy stock at R 100 and sell at R 150. Same transaction — two readings:
• GP% = 33% (R 50 ÷ R 150)
• Markup% = 50% (R 50 ÷ R 100)
A supplier says "you'll make 50% on this." You think 50% GP. You offer a 30% discount to clear stock, assuming you'll still walk away with 20%. Your actual GP after discount? Around 5%. On high-volume lines that rounding error compounds into tens of thousands lost per year.
• GP% = 33% (R 50 ÷ R 150)
• Markup% = 50% (R 50 ÷ R 100)
A supplier says "you'll make 50% on this." You think 50% GP. You offer a 30% discount to clear stock, assuming you'll still walk away with 20%. Your actual GP after discount? Around 5%. On high-volume lines that rounding error compounds into tens of thousands lost per year.
Rule of thumb: if someone quotes you a margin without specifying whether it's GP or markup, assume they mean markup — the real GP is always lower than it sounds. Always convert before making pricing decisions.
Quick conversion table
The most common markup percentages and their true GP equivalents.
| Markup % | GP % | Example on R 100 cost | |
|---|---|---|---|
| 25% | → | 20.0% | Sell at R 125 · profit R 25 |
| 33.3% | → | 25.0% | Sell at R 133 · profit R 33 |
| 50% | → | 33.3% | Sell at R 150 · profit R 50 |
| 66.7% | → | 40.0% | Sell at R 167 · profit R 67 |
| 100% | → | 50.0% | Sell at R 200 · profit R 100 |
| 150% | → | 60.0% | Sell at R 250 · profit R 150 |
| 200% | → | 66.7% | Sell at R 300 · profit R 200 |
| 300% | → | 75.0% | Sell at R 400 · profit R 300 |