Product Pricing Calculator Nigeria — Markup & Margin
Calculate the right selling price for your products using markup or margin method. Understand the difference and set competitive Nigerian prices.
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Common markup presets:
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Selling Price (ex-VAT)
₦0
Profit Per Unit
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Markup
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Margin
Pricing Breakdown
Markup vs Margin Reference Table
| Markup % | Margin % | Multiply cost by |
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Markup vs Margin Explained
Markup = (Profit / Cost) × 100. Used when you know your costs and want to add a fixed percentage on top.
Margin = (Profit / Selling Price) × 100. Used in financial reporting — it tells you what portion of your revenue is profit.
Key relationship: Margin = Markup / (1 + Markup). A 50% markup is only a 33.3% margin!
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to COST to arrive at the selling price. Margin is profit expressed as a percentage of SELLING PRICE. Example: if cost is ₦100 and you sell for ₦150 — markup is 50% (₦50/₦100), but margin is 33.3% (₦50/₦150). Nigerian traders typically think in markup; accountants think in margin.
What markup should I use for my Nigerian business?
Typical markups in Nigeria by sector: Retail fashion/clothing: 80–150%; Food & beverages: 50–100%; Electronics: 10–30%; Pharmaceuticals: 20–50%; Building materials: 15–40%; Service businesses (no COGS): aim for 60–80% margin. Always ensure your markup covers all overhead costs plus profit.
How do I account for VAT in my pricing?
If you are VAT-registered, your selling price should be quoted exclusive of VAT (ex-VAT), and you add 7.5% VAT on the invoice. The price you charge the customer = ex-VAT price × 1.075. Ensure your cost price also excludes VAT (since you can reclaim input VAT).
How should I set prices to stay competitive in Nigeria?
Start with a cost-plus approach (cost + desired margin), then check competitors. If market price is lower than your minimum viable price, you need to either reduce costs or find a different niche. Consider value-based pricing for services — price what the outcome is worth to the customer, not just your time.