Markup vs Margin Calculator
(Markup to Margin Converter)
Enter a unit cost with a markup, a margin or a selling price. The calculator shows both percentages, the price and the profit per unit.
Step 1 — What do you already know?
Step 2 — Enter Values
What you paid or spent to produce/acquire one unit
Profit as a percentage of your cost
Calculated Results
Enter your cost and either a markup %, margin %, or selling price.
Markup → Margin Quick Reference
Same formulas as above, precomputed for common round-number markups
| Markup % | Equivalent Margin % | On a $40 Cost, Price Becomes |
|---|---|---|
| 10% | 9.09% | $44.00 |
| 20% | 16.67% | $48.00 |
| 25% | 20.00% | $50.00 |
| 33.33% | 25.00% | $53.33 |
| 50% | 33.33% | $60.00 |
| 66.67% | 40.00% | $66.67 |
| 100% | 50.00% | $80.00 |
| 150% | 60.00% | $100.00 |
| 200% | 66.67% | $120.00 |
| 300% | 75.00% | $160.00 |
This markup vs margin calculator converts between the two and shows the selling price that goes with them. Enter a unit cost and a markup %, a margin % or a selling price. It returns both percentages, the price and the profit per unit. Markup and margin describe the same profit, so the calculator is mostly there to stop one being mistaken for the other.
Markup vs Margin: The Formulas
Markup compares profit with cost. Margin compares profit with selling price.
An item that costs $40 and sells for $60 makes $20. The markup is 20 ÷ 40 = 50%. The margin is 20 ÷ 60 = 33.33%. Price is always larger than cost when there is a profit, so margin is always the smaller number.
How to Convert Markup to Margin
You do not need the price or the cost to convert one percentage into the other. Use decimals: 50% is 0.50.
A 50% markup is 0.50 ÷ 1.50 = 33.33% margin. A 40% margin is 0.40 ÷ 0.60 = 66.67% markup. The table under the calculator converts common markups to margins. This one goes the other way:
| Target margin | Markup needed | Price on a $40 cost |
|---|---|---|
| 10% | 11.11% | $44.44 |
| 20% | 25% | $50.00 |
| 25% | 33.33% | $53.33 |
| 30% | 42.86% | $57.14 |
| 40% | 66.67% | $66.67 |
| 50% | 100% | $80.00 |
| 60% | 150% | $100.00 |
| 75% | 300% | $160.00 |
Selling Price From Markup or Margin
The two formulas give different prices for the same percentage. This is where the mix-up costs money.
| On a $40 cost | Formula | Price | Profit | Margin |
|---|---|---|---|---|
| 50% markup | 40 × 1.50 | $60.00 | $20.00 | 33.33% |
| 50% margin | 40 ÷ 0.50 | $80.00 | $40.00 | 50% |
A seller who needs a 50% margin and adds 50% to cost charges $60 where $80 was needed, and earns half the planned profit on every unit. For pricing from full cost including overhead, use the Cost-Plus Pricing Calculator.
Which One to Use
- Markup fits when you start from cost: a supplier invoice or a production cost, plus a percentage.
- Margin fits when you start from sales: it is the figure on an income statement, and it shows how much of each dollar of sales is left to pay other costs.
- In conversation, ask which one is meant. A supplier quoting 30% and a buyer hearing 30% may be thinking of prices that differ by several dollars a unit.
Margin here means gross margin on one item. For a whole period of sales, the Gross Profit Margin Calculator works from revenue and cost of goods sold.
How to Use the Markup vs Margin Calculator
- Choose what you know: Pick cost with a markup %, cost with a margin %, or cost with a selling price.
- Enter the unit cost: Type what one unit costs you to buy or make.
- Enter the second value: Type the markup %, the margin % or the selling price, depending on the option you picked.
- Read the result: The calculator shows markup %, margin %, the selling price and the profit per unit.
Frequently Asked Questions
What is the difference between markup and margin?
Both describe the same profit, measured against different bases. Markup is profit divided by cost. Margin is profit divided by selling price. An item that costs $40 and sells for $60 has $20 of profit, a 50% markup and a 33.33% margin.
How do I convert markup to margin?
Divide the markup by 1 plus the markup, using decimals. A 50% markup is 0.50 ÷ 1.50 = 0.3333, a 33.33% margin.
How do I convert margin to markup?
Divide the margin by 1 minus the margin, using decimals. A 40% margin is 0.40 ÷ 0.60 = 0.6667, a 66.67% markup.
Is a 50% markup the same as a 50% margin?
No. A 50% markup on a $40 cost gives a $60 price and a 33.33% margin. A 50% margin on a $40 cost needs an $80 price, which is a 100% markup.
Can markup be more than 100%?
Yes. Markup has no upper limit: selling a $40 item for $120 is a 200% markup. Margin cannot reach 100% while the item has any cost, because profit is always smaller than the price.
Should I price with markup or margin?
Either works if you know which one you are using. Markup is easier when you start from cost. Margin is the figure that lines up with an income statement, because it is measured against sales. Set the margin you need, convert it to a markup, and apply that to cost.
Formulas and worked examples checked in October 2026.