Markup to margin

Gross margin for each markup on cost, with the selling price of an item that costs $100.
MarkupMarginPrice on $100 cost
10% 9.1% $110.00
15% 13.0% $115.00
20% 16.7% $120.00
25% 20.0% $125.00
30% 23.1% $130.00
35% 25.9% $135.00
40% 28.6% $140.00
50% 33.3% $150.00
60% 37.5% $160.00
70% 41.2% $170.00
75% 42.9% $175.00
80% 44.4% $180.00
100% 50.0% $200.00
150% 60.0% $250.00
200% 66.7% $300.00
300% 75.0% $400.00
400% 80.0% $500.00

Margin to markup

Markup needed to reach each target margin, with the selling price for a $100 cost.
Target marginMarkup neededPrice on $100 cost
5% 5.3% $105.26
10% 11.1% $111.11
15% 17.6% $117.65
20% 25.0% $125.00
25% 33.3% $133.33
30% 42.9% $142.86
35% 53.8% $153.85
40% 66.7% $166.67
45% 81.8% $181.82
50% 100.0% $200.00
55% 122.2% $222.22
60% 150.0% $250.00
65% 185.7% $285.71
70% 233.3% $333.33
75% 300.0% $400.00
80% 400.0% $500.00
90% 900.0% $1,000.00

Conversion formulas

Formulas and worked example
margin % = markup % ÷ (100 + markup %) × 100 markup % = margin % ÷ (100 − margin %) × 100

Both describe the same profit. Markup divides it by cost; margin divides it by price. Because price is always larger than cost when there's a profit, margin is always the smaller number.

Worked example

Cost · markup
$100 · 25%
Price
$125
Profit
$25
Margin
$25 ÷ $125 = 20%
Formula check
25 ÷ 125 × 100 = 20%

Markup and margin FAQ

How do I convert markup to margin?

Divide the markup by 1 plus the markup, using decimals. A 50% markup is 0.5 ÷ 1.5 = 0.333, or a 33.3% margin. In percentages: margin = markup ÷ (100 + markup) × 100.

How do I convert margin to markup?

Divide the margin by 1 minus the margin, using decimals. A 40% margin is 0.4 ÷ 0.6 = 0.667, or a 66.7% markup. In percentages: markup = margin ÷ (100 − margin) × 100.

What margin is a 100% markup?

50%. Doubling the cost (a 100% markup) means half of the selling price is profit. This is the common "keystone" pricing rule in retail.

Why is there no markup for a 100% margin?

A 100% margin would mean the item cost nothing, so the markup on a cost of zero is undefined. Margins can approach but never reach 100%, while markups can grow without limit.

Which should I use — markup or margin?

Use whichever your industry quotes, but plan profit with margin, because it tells you what share of each sales dollar you keep. The danger is mixing them: applying a 30% markup when you meant a 30% margin underprices the item.

Related calculators

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