Margin Vs. Markup Converter
Converts between margin percentage and markup percentage so users understand the difference
Profit as a percentage of selling price
Enter a value to convert
Frequently Asked Questions
What is the difference between margin and markup?
Margin is profit expressed as a percentage of the selling price. Markup is profit expressed as a percentage of the cost. A product bought for $60 and sold for $100 has a 40% margin but a 66.7% markup.
Why does markup always seem higher than margin?
Because markup uses the smaller number (cost) as the denominator, while margin uses the larger number (selling price). Dividing the same profit by a smaller number produces a larger percentage.
How do I convert margin to markup?
Use the formula: Markup % = Margin % / (100 - Margin %). For example, a 40% margin converts to 40 / 60 = 66.7% markup.
Can margin ever be 100% or higher?
Margin can never reach 100% because that would mean the product cost nothing to produce. Markup, however, can be any positive number. A 100% markup means you doubled the cost, resulting in a 50% margin.
Related Calculators
Profit Margin Calculator
Calculates gross, operating, and net profit margins as a percentage of revenue from cost and selling price inputs
Markup Calculator
Determines the percentage added to cost to arrive at a selling price and shows resulting margin
Break-Even Calculator
Calculates the exact number of units or revenue needed to cover all fixed and variable costs
Cash Flow Calculator
Projects cash inflows and outflows over a period to determine if revenue covers obligations