🔄 Markup & Margin Converter
Instantly convert between markup % and margin %. Stop confusing the two — see the exact difference and understand which to use for pricing.
🔄 Markup ↔ Margin Converter
Convert instantly — no confusion, no mistakes
Markup vs Margin — Simple Explanation
Markup is profit as a % of cost. Margin is profit as a % of selling price. Same profit, different baseline.
| You Buy For | You Sell For | Profit | Markup % | Margin % |
|---|---|---|---|---|
| $10 | $20 | $10 | 100% | 50% |
| $20 | $40 | $20 | 100% | 50% |
| $30 | $50 | $20 | 67% | 40% |
Notice: Same 100% markup always = 50% margin. And 67% markup = 40% margin. The formulas are different, so use the right one for pricing.
Quick Decision Guide
Use Margin % for Pricing
If you want 40% margin and cost is $20: Price = $20 ÷ (1 − 0.40) = $33.33. This ensures you keep 40 cents of every dollar.
Use Markup % for Quick Calculations
If you add 100% markup to $20 cost: Price = $20 + ($20 × 100%) = $40. Fast mental math, but gives only 50% margin.
Never Confuse Them
Most pricing mistakes come from assuming 40% markup = 40% margin. Use this converter to always get the right answer.