1. What is a Price Calculator (Cost + Markup)?

Definition: This calculator determines the selling price by adding the cost price and markup amount in South African Rand (ZAR).

Purpose: It helps businesses and individuals set appropriate selling prices by clearly showing the relationship between cost and markup.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P \) — Selling price (ZAR)
• \( C \) — Cost price (ZAR)
• \( M \) — Markup amount (ZAR)

Explanation: The cost price is added to the markup amount to determine the final selling price.

3. Importance of Proper Pricing

Details: Accurate pricing ensures profitability while remaining competitive in the South African market. It helps cover costs and generate profit.

4. Using the Calculator

Tips: Enter the cost price in ZAR and the desired markup amount in ZAR. Both values must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between markup and margin?
A: Markup is the amount added to cost, while margin is profit as a percentage of selling price.

Q2: How do I determine a good markup amount?
A: Consider your industry standards, competition, and desired profit margins in the South African market.

Q3: Should I include VAT in these calculations?
A: VAT is typically added after calculating the base price. Check South African tax regulations.

Q4: Can I use this for service pricing?
A: Yes, this works for both product and service pricing in South Africa.

Q5: How often should I review my pricing?
A: Regularly review pricing, especially when costs change or market conditions shift.