Markup vs Margin Calculator
Markup is profit measured against cost; margin is the same profit measured against the selling price. A 50% markup is only a 33.3% margin. Pick a mode, enter your numbers, and get the right price.
I know my cost and markup
A 50% markup produces a margin — not 50%.
I want a target margin
To hit a 40% margin on a $40 cost, price at .
I already have cost and price
The formulas
Margin % = (Price − Cost) / Price × 100
Markup = Margin / (1 − Margin)
The numerator is identical — the dollar profit. Only the denominator changes, which is why markup and margin are never the same number on a profitable sale. Margin is always the smaller percentage.
Markup to margin quick reference
| Markup | Margin |
|---|---|
| 20% | 16.7% |
| 30% | 23.1% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50.0% |
Frequently asked questions
Is a 50% markup the same as a 50% margin?
No. With a cost of $40, a 50% markup sets a price of $60 and a profit of $20. That $20 is 33.3% of the $60 price, so the margin is 33.3% — not 50%.
How do I convert markup to margin?
Use margin = markup ÷ (1 + markup). In percentages, 50% markup → 0.50 ÷ 1.50 = 0.333 = 33.3% margin.
What markup gives me a 40% margin?
Use markup = margin ÷ (1 − margin): 0.40 ÷ 0.60 = 0.667, so you need about a 66.7% markup. On a $40 cost that means a price of $66.67.
Which one should I use for pricing?
Margin is the safer number for managing profitability because it directly shows how much of every sales dollar you keep. Just be clear which one you mean when you talk about a target percentage.