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Markup vs Margin Calculator

Convert between markup, margin and selling price. Tanzania retail and wholesale pricing made easy.

How to convert markup and margin

Enter cost and markup OR cost and selling price.

Tool returns markup %, margin %, profit per unit.

Toggle VAT-inclusive or VAT-exclusive view.

Use margin for retail; use markup for cost-plus pricing.

Markup vs margin — they are not the same

This is the single most common pricing mistake we see in Tanzanian retail. Markup is profit as a percentage of cost. Margin is profit as a percentage of selling price. A 50% markup is only a 33.3% margin — and pricing on the wrong one will quietly bleed your business.

Quick conversion table

20% markup = 16.7% margin
30% markup = 23.1% margin
50% markup = 33.3% margin
100% markup = 50% margin
200% markup = 66.7% margin

Healthy margins by sector in Tanzania

FMCG retail (mama lishe, kiosks, dukas): 15–25%
Electronics: 8–15%
Fashion / apparel: 35–55%
Restaurants: 60–70% on food, 75%+ on beverages
Services / consulting: 50%+

Should you price on markup or margin?

Margin — it directly tells you the gross profit on each shilling of sales, which is the metric the bank cares about, the one investors check, and the one your accountant tracks. Use markup only as a quick mental shortcut from cost.

Combine with the VAT Calculator for VAT-inclusive pricing, the Break-even Calculator to size minimum volume, and the ROI Calculator for capital decisions.

Take this further

Margin calculated on invoice cost overstates every imported line. Tawala Inventory prices against true landed cost, and Tawala Finance reports realised margin per product, per branch and per salesperson.

Not sure which module fits? Compare every option under Tawala solutions, or find the setup for your sector under Tawala by industry.

Frequently asked questions

Markup vs margin — what's the difference?

Markup is profit as a percentage of cost; margin is profit as a percentage of selling price. A 50% markup is a 33.3% margin.

Which should retailers price on?

Margin — it directly reflects gross profit on each shilling of sales.

What is a healthy margin in Tanzania?

FMCG retail 15–25%, electronics 8–15%, fashion 35–55%, services 50%+.

Does the tool handle VAT?

Yes — toggle VAT-inclusive or VAT-exclusive pricing.

Can I price multiple SKUs?

The free tool is single-SKU; bulk pricing is in Tawala POS.

Want this automated for your business?

Tawala bundles every Tanzanian tax, payroll and compliance calculation — and files it for you. From TZS 75,000/month.

See pricing → WhatsApp sales

Download Markup vs Margin

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Enter your figures above first — the download includes whatever the calculator is currently showing.

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