Markup Calculator Nigeria — Selling Price from Cost & Markup %
Calculate selling price, profit amount, and equivalent margin from your cost price and desired markup percentage. Includes VAT calculation.
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Markup presets:
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Selling Price (ex-VAT)
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Selling Price (inc. VAT)
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Profit per Unit
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Equivalent Margin %
Markup Analysis
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Pricing Strategy for Nigerian Businesses
In Nigeria's inflationary environment, it is critical to review your markup regularly. If your cost price increases by 20% (due to import duties, fuel price hikes, or exchange rate changes), and you don't adjust your selling price proportionally, your actual profit margin shrinks even if the naira amount appears the same.
Consider setting prices in terms of margin rather than fixed markup amounts — this automatically adjusts for cost changes and maintains profitability.
Frequently Asked Questions
What is markup in business?
Markup is the percentage added to the cost price to arrive at the selling price. Formula: Markup % = (Selling Price - Cost Price) / Cost Price × 100. It is the seller's perspective on profitability — "how much above cost am I charging?" A 100% markup means you doubled your cost to set the selling price.
How is markup different from margin?
Markup uses cost as the base (profit/cost), while margin uses selling price as the base (profit/revenue). A 50% markup gives a 33.3% margin. Always be clear which you mean in pricing discussions. "We make 50% on this product" is ambiguous — is that 50% margin or 50% markup?
What markup should I use for my Nigerian business?
Markup depends on your industry, competition, and cost structure. Typical Nigerian business markups: food/grocery retail 20–40%, fashion 100–300%, electronics 15–30%, restaurant meals 200–400%, handmade crafts 100–500%. In high-inflation periods, increase markup to maintain real margins as costs rise.
How do I account for VAT when calculating markup?
VAT (7.5% in Nigeria) should be added after your markup. Set your selling price based on cost + markup, then add 7.5% VAT on top for the final customer price. Your markup calculation should be on the ex-VAT price. The VAT is not part of your profit — it goes to FIRS.
What is keystone pricing?
Keystone pricing is a common retail strategy of marking up goods by 100% (doubling the wholesale cost). It gives a 50% gross margin and was traditional in many retail sectors. While simple to apply, it may not be appropriate for all products — high-value or fast-moving items may warrant different markups.