Margin to Markup Calculator
Margin and markup describe the same profit from two angles: margin is a share of the selling price, markup a share of the cost. Convert one into the other instantly, get the price multiplier and, with a unit cost, the selling price you need.
Profit as a share of the selling price (must be below 100%).
Profit as a share of the cost.
Shows the selling price and profit for this cost.
How to use the Margin to Markup Calculator
- Choose the direction: margin to markup, or markup to margin.
- Enter the percentage you know.
- Optionally enter a unit cost to see the selling price and profit.
- Read the converted percentage and the price multiplier.
- Use the table to look up other margins quickly or download it.
Margin and markup formulas
- Markup = margin ÷ (1 − margin)
- Margin = markup ÷ (1 + markup)
- Selling price = cost × (1 + markup) = cost ÷ (1 − margin)
- Margin = (price − cost) ÷ price; markup = (price − cost) ÷ cost
Example: an item costs $25 and sells for $41.67. Profit is $16.67, which is a 40% margin (16.67 ÷ 41.67) and a 66.7% markup (16.67 ÷ 25).
Margin to markup chart
| Margin | Markup | Multiplier | Margin | Markup | Multiplier |
|---|---|---|---|---|---|
| 5% | 5.26% | 1.053 | 45% | 81.82% | 1.818 |
| 10% | 11.11% | 1.111 | 50% | 100% | 2.000 |
| 15% | 17.65% | 1.176 | 55% | 122.22% | 2.222 |
| 20% | 25% | 1.250 | 60% | 150% | 2.500 |
| 25% | 33.33% | 1.333 | 65% | 185.71% | 2.857 |
| 30% | 42.86% | 1.429 | 70% | 233.33% | 3.333 |
| 33.33% | 50% | 1.500 | 75% | 300% | 4.000 |
| 35% | 53.85% | 1.538 | 80% | 400% | 5.000 |
| 40% | 66.67% | 1.667 | 90% | 900% | 10.000 |
A common pricing mistake is to add the target margin as a markup: adding 40% to a $25 cost gives $35, which is only a 28.6% margin. To earn a 40% margin you need a 66.7% markup.
Frequently asked questions
How do you convert margin to markup?
Markup = margin ÷ (1 − margin). For a 40% margin: 0.40 ÷ 0.60 = 0.667, so the markup is 66.7%.
How do you convert markup to margin?
Margin = markup ÷ (1 + markup). For a 50% markup: 0.50 ÷ 1.50 = 0.333, so the margin is 33.3%.
What is the difference between margin and markup?
Both use the same profit (price − cost). Margin divides that profit by the selling price; markup divides it by the cost. Because price is larger than cost, margin is always lower than markup for a profitable item.
What margin is a 100% markup?
A 100% markup, sometimes called keystone pricing, doubles the cost and gives a 50% margin. A 200% markup triples the cost and gives a 66.7% margin.
Why can't margin be 100% or more?
Margin is profit divided by price. Reaching 100% would require a cost of zero, and the needed markup grows without limit as margin approaches 100% (90% margin needs a 900% markup).
How do I find the selling price from a target margin?
Price = cost ÷ (1 − margin). A $25 item at a 40% margin sells for 25 ÷ 0.60 = $41.67. This is the same as multiplying the cost by 1 + markup (1.6667).
Is anything stored or sent?
No. The conversion runs in your browser.