Markup vs Margin Calculator
Convert between markup, margin and selling price. Tanzania retail and wholesale pricing made easy.
How to convert markup and margin
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.
Frequently asked questions
Markup vs margin — what's the difference?
Which should retailers price on?
What is a healthy margin in Tanzania?
Does the tool handle VAT?
Can I price multiple SKUs?
Want this automated for your business?
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