Business tool

Markup versus margin calculator

Convert desired markup to margin and vice versa.

Your inputs

Margin must be below 100%; markup can exceed 100%.

Your results

Ready when you are
Add your inputs or try an example.
Your results will appear here.

Compare two scenarios.

Run the tool, then save A or B to compare headline results and entered values. Keep currencies, periods and assumptions consistent.

Saved scenarios stay in this browser until you clear them. Reset clears the working result; it keeps saved scenarios. Use Clear saved scenarios on a shared device.

Run the tool to save your first scenario.

How it works

Convert a markup on cost into its equivalent margin on selling price, or work backward from a target margin. Enter a positive unit cost to see the price and profit alongside both percentages.

Price from markup = cost × (1 + markup). Price from margin = cost ÷ (1 − margin). Margin = markup ÷ (1 + markup). Markup = margin ÷ (1 − margin), using decimal rates.
Read the source reference ↗

A few things to know

Uses nonnegative markup or margin and a positive cost. Costs and price must use the same currency and cost scope. It does not include price-dependent fees, discounts, taxes or overhead unless accounted for separately. The conversion changes the percentage denominator; it does not change the amount of profit.

Results use your inputs. Keep all money amounts in the same currency.

A little context

When to use this tool

Markup and margin describe the same profit amount with different denominators. Confusing them can turn a target into a price that earns less than expected. This markup versus margin calculator converts the percentage you know, shows the corresponding selling price, and places both measures together so a supplier quote, pricing sheet or customer discussion uses clear terms.

  • Translate a supplier’s suggested markup into the margin your pricing dashboard tracks.
  • Build a selling price from a target margin without accidentally adding that percentage to cost.
  • Check a price list before sharing it with colleagues who use different pricing terminology.

How to use markup versus margin calculator

  1. Enter a positive unit cost

    Use the complete cost scope you want to compare, in one currency. A positive cost is required because markup is expressed as a percentage of that cost.

  2. Choose the percentage definition

    Select markup on cost or margin on selling price. This selection determines the price formula; the same entered percentage produces different prices in the two modes.

  3. Review both percentages and the price

    Enter the known percentage, calculate, and compare markup, margin and profit per unit. If you change the cost later, the price and profit amount change while the equivalent percentages stay the same.

Try the numbers

A 50% markup is a 33.33% margin

Inputs

Unit cost 100; percentage type markup; known percentage 50%.

Result

Selling price 150.00; profit per unit 50.00; markup 50%; margin 33.33%.

What it means

The profit of 50 is half the cost of 100 but only one third of the price of 150. Switching to a 50% margin instead produces a price of 200.00.

Common mistakes to avoid

Using the wrong denominator

Markup compares profit with cost. Margin compares profit with selling price. Writing “50% profit” without naming the denominator leaves the pricing instruction ambiguous.

Assuming markup stops at 100%

Markup can exceed 100% because price can be several times cost. A positive-cost margin remains below 100%; entering 200% as a margin is not a valid equivalent.

Mixing cost scopes

A markup calculated from supplier cost cannot be compared directly with a margin after packaging, commissions and advertising. Define the same costs before comparing percentages.

Useful answers

Frequently asked questions

Definitions, edge cases, and practical next steps for this tool. Search all tool FAQs ↗

What is the difference between markup and margin?

Markup is the profit amount divided by unit cost; margin is the profit amount divided by selling price. Because selling price is larger than cost when profit is positive, the margin percentage is lower than the corresponding markup percentage.

How do I convert markup to margin?

Turn markup into a decimal, then divide it by one plus that decimal. For 50% markup, 0.50 divided by 1.50 gives one third, or 33.33% margin. The calculator also shows the price for your entered unit cost.

How do I convert margin to markup?

Divide the margin decimal by one minus the margin decimal. A 40% margin gives 0.40 divided by 0.60, or 66.67% markup. At a cost of 60, both percentages describe the same selling price of 100.

Can a markup be greater than 100%?

Yes. A cost of 100 with a 200% markup produces a price of 300 and profit of 200. The equivalent margin is 66.67%. High markup does not itself prove high net profitability because additional business costs may still be omitted.

Why must the unit cost be above zero?

A zero cost makes markup undefined because its denominator is zero. The tool requires a positive cost so both percentages can be meaningfully compared. For a service with little material cost, consider an allocation of labor and delivery costs rather than assuming zero.

Does zero markup mean a zero selling price?

No. Zero markup means the selling price equals the unit cost and the modeled profit is zero. The equivalent margin is also zero. At a cost of 100, zero markup produces a price of 100, before any expenses outside that cost scope.

Can this calculator show a loss?

This converter accepts nonnegative markup and margin because it is intended for positive-cost pricing targets. To analyze an existing selling price below cost, use the profit margin and target-price calculator, which keeps negative current margins visible.

Should I use margin or markup for my price sheet?

Either can work if the definition and cost scope are stated. Margin is useful when evaluating the share of revenue retained; markup is useful when building a price from cost. Include both when exchanging a spreadsheet with people who use different conventions.

Explore the topic in the blog

Sources and method

Use the references below to check definitions and platform guidance. The model’s scope and limits are explained above. Read our editorial standards.

Help

How can we help?

Find instructions, report a problem, or leave a message.

Read this tool’s FAQs ↗

Guides for this tool

A 50% markup isn’t a 50% margin.
Common questions

Where do I start? Try an example, then replace its values with yours.

Why did my upload fail? Check the field error, accepted format and file-size limit. Start with a small sanitized sample.

Where are my results? Review the result panel, then use its copy or download controls. If a calculation fails, check the error beside the input.

Message us

Chat opens Tawk.to. It processes your messages and connection data. Do not paste private inputs or file contents. Availability and response times vary.