What is the difference between markup and margin?

Markup is profit as a percentage of cost (Profit / Cost × 100). Margin is profit as a percentage of selling price (Profit / Selling Price × 100). A 50% markup equals a 33.3% margin — they are not interchangeable.

How do I convert margin to markup?

Use the formula: Markup % = Margin % / (1 − Margin % / 100) × 100. For example, a 40% margin gives a markup of 40 / 0.60 = 66.67%.

How do I convert markup to margin?

Use the formula: Margin % = Markup % / (1 + Markup % / 100) × 100. For example, a 50% markup gives a margin of 50 / 1.50 = 33.33%.

Can margin ever equal markup?

Only when both are 0% (no profit). For any positive profit, margin is always lower than the equivalent markup because margin divides by the larger selling price.

What happens if I enter a margin of 100%?

A 100% margin would mean the selling price is infinite (cost is zero relative to price), which is undefined. The calculator will show an error for margins at or above 100%.

Is this tool accurate for multi-currency pricing?

Yes — the percentages are currency-neutral. Enter cost in any currency and the selling price result will be in the same currency.

Markup from Margin Calculator

Convert between gross margin and markup percentages, and calculate selling price from cost using either margin or markup.

Gross Margin %

Enter a value between 0 and 99.99

Key Formulas

Markup from Margin M% / (1 - M%/100)

Margin from Markup K% / (1 + K%/100)

Price from Margin Cost / (1 - M%/100)

Price from Markup Cost × (1 + K%/100)

Result

Enter values and click Calculate

Common Conversions

Gross Margin	Markup	Multiplier
10%	11.11%	1.111×
20%	25.00%	1.250×
25%	33.33%	1.333×
30%	42.86%	1.429×
40%	66.67%	1.667×
50%	100.00%	2.000×
60%	150.00%	2.500×

Summary

Markup and margin are two ways to express profitability on a product, but they use different bases. Margin is profit divided by selling price, while markup is profit divided by cost. This calculator lets you convert instantly between the two and compute the correct selling price from a given cost.

How it works

Enter your product cost in the Cost field.
Choose whether you know the Gross Margin % or the Markup %, and enter it.
The calculator instantly converts to the other percentage.
The resulting selling price and profit amount are displayed in real time.
Use the reverse tab to start from a selling price and find the implied margin and markup.

Use cases

Set retail prices that hit a target gross margin for your P&L.
Check whether a supplier quote leaves enough markup to cover overhead.
Quickly translate margin targets from finance into markup percentages for buyers.
Verify that a discount does not erode margin below breakeven.
Train sales staff on the difference between margin and markup.
Compare profitability across product lines using a consistent metric.

Frequently Asked Questions

Last updated: 2026-05-29 · Reviewed by Nham Vu