Markup to margin converter
Many sellers add a percentage to cost and assume it is their margin. Enter the markup to see the actual margin.
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter markup.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Margin = markup ÷ (100 + markup) × 100. Cost multiplier = 1 + markup ÷ 100.
Example
Inputs: Markup = 50 %. Result: Margin on selling price: 33.33%; Cost multiplier: 1.5.
Limits and caveats
- The result is a gross margin on unit cost only; fixed overheads are not deducted.
Questions about this tool
Does a 100% markup mean 100% profit?
It means profit equals cost, but the margin on the selling price is only 50%.
Can the margin ever reach 100%?
No. As markup grows the margin gets closer to 100% without reaching it.
When should I use margin instead of markup?
Margin suits financial reports; markup is handier when pricing from cost.