Markup vs Margin Calculator
Convert between markup percentage and profit margin.
Two words, two very different numbers
Markup and margin both describe profit, but against different bases — cost for markup, price for margin. Confusing them leads to underpricing, because a markup always looks bigger than the equivalent margin.
A 50% markup is only a 33.3% margin. This converter moves between the two so you can price confidently, whichever figure your supplier or accountant quotes.
Correct and private
The conversion runs in your browser, so nothing you enter is uploaded.
Frequently Asked Questions
What is the difference?
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same profit gives two different percentages.
Why do people confuse them?
Because both describe the same profit, but a 50% markup is only a 33% margin, which trips up pricing decisions.
How do I convert?
Margin equals markup divided by one plus markup; markup equals margin divided by one minus margin.
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