Margin vs Markup Calculator
Convert a margin into a markup or the other way round — with a table of common values.
| Markup | Margin | Price at a cost of 100 |
|---|---|---|
| 5% | 4.76% | 105.00 |
| 10% | 9.09% | 110.00 |
| 15% | 13.04% | 115.00 |
| 20% | 16.67% | 120.00 |
| 25% | 20.00% | 125.00 |
| 30% | 23.08% | 130.00 |
| 33.33% | 25.00% | 133.33 |
| 40% | 28.57% | 140.00 |
| 50% | 33.33% | 150.00 |
| 60% | 37.50% | 160.00 |
| 75% | 42.86% | 175.00 |
| 100% | 50.00% | 200.00 |
| 150% | 60.00% | 250.00 |
| 200% | 66.67% | 300.00 |
| 300% | 75.00% | 400.00 |
Use prices without sales tax or VAT: tax is not part of your revenue.
Margin vs markup formulas
margin = markup ÷ (1 + markup)
Example: a 20% margin is 0.2 ÷ 0.8 = 25% markup. A 50% markup is 0.5 ÷ 1.5 = 33.33% margin.
The difference in one sentence
Margin is profit divided by the selling price; markup is profit divided by the cost. Because the price is always larger than the cost, the markup is always the larger percentage.
Which one should you use?
Accountants and investors talk in margins, because they compare profit with revenue. Buyers and shop owners often price with markups, because they start from the cost. Use whichever you like — just convert before you compare the two.
Frequently asked questions
Is markup or margin higher?
Markup, for the same sale. 25% markup = 20% margin; 100% markup = 50% margin.
How do I convert margin to markup?
Divide the margin by (1 − margin). 40% margin = 0.4 ÷ 0.6 = 66.67% markup.
How do I convert markup to margin?
Divide the markup by (1 + markup). 60% markup = 0.6 ÷ 1.6 = 37.5% margin.