Markup vs Margin Calculator
Convert between markup and margin percentages and see them side by side.
What the Markup vs Margin Calculator does
Markup and margin describe the same profit from different angles. Retail and wholesale often quote markup; accounting and investors work in margin. Converting between them correctly is essential when negotiating or reporting.
Formula
Margin = Markup ÷ (1 + Markup)Markup = Margin ÷ (1 − Margin)
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Convert | one of 2 options | Yes | — |
| Percentage | % | Yes | — |
| Cost | selected currency | Optional | Optional — shows the resulting price. Accepts 0 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Convert and Currency.
- Enter Percentage.
- Optionally add Cost.
- Select Calculate.
Worked example
A supplier quotes a 50% markup. What margin is that?
- Mode
- Markup → Margin
- Percentage
- 50
0.5 ÷ 1.5 = 33.33% margin.
Reading the result
- Markup measures profit against cost; margin measures the same profit against the selling price. A 50% markup is a 33.3% margin.
- Markup is always the larger number, because it divides by the smaller base.
Common mistakes
- Applying a target margin as if it were a markup. Pricing for a 40% margin needs a 66.7% markup, and treating them as equal underprices the item.
- Quoting margin to a supplier who is thinking in markup, or the reverse, which makes two parties agree to different prices.
Frequently asked questions
Which is always larger?
Markup, for any profitable sale. Markup divides by the smaller number (cost), so it produces a bigger percentage than margin.