You buy a product for $60. You sell it for $100. Your profit is $40.
Both describe the same $40 profit. Markup divides by cost ($60). Margin divides by selling price ($100). That's the entire difference.
Markup to Margin: Margin = Markup / (100 + Markup) x 100
Example: 50% markup → 50 / (100 + 50) x 100 = 33.3% margin
Margin to Markup: Markup = Margin / (100 - Margin) x 100
Example: 40% margin → 40 / (100 - 40) x 100 = 66.7% markup
Use our Markup Calculator to convert between them instantly.
| Markup % | Margin % | Price Multiplier |
| 10% | 9.09% | x1.10 |
| 15% | 13.04% | x1.15 |
| 20% | 16.67% | x1.20 |
| 25% | 20.00% | x1.25 |
| 33.33% | 25.00% | x1.33 |
| 50% | 33.33% | x1.50 |
| 75% | 42.86% | x1.75 |
| 100% | 50.00% | x2.00 |
| 150% | 60.00% | x2.50 |
| 200% | 66.67% | x3.00 |
Key insight: A 100% markup means you double the cost — but your margin is only 50%, not 100%.
Imagine your boss says "I want a 30% margin on everything." If you accidentally apply a 30% markup instead, you'd only get a 23% margin. On $1 million in revenue, that mistake costs you $70,000 in lost profit.
When to use markup: When you know your cost and want to set a price. Common in retail and wholesale.
When to use margin: When you're analyzing financial performance. Used in financial statements, investor reports, and business planning.
1. Markup and margin are NOT the same — markup is always a higher number for the same profit.
2. Markup divides by cost; margin divides by price.
3. A 100% markup = 50% margin — memorize this as your anchor point.
4. Always clarify which metric you're using when discussing pricing with your team.
5. Use our Markup Calculator to convert between them instantly.