Margin ↔ markup

Margin is profit as a % of the sell price; markup is profit as a % of cost. 25% margin = 33.3% markup.

Try an example

Convert from

You have a

25% margin on $75.00 cost

How it's calculated
  • Margin = profit ÷ sell price. Markup = profit ÷ cost.
  • Markup = margin ÷ (1 − margin). Margin = markup ÷ (1 + markup).
  • Sell price = cost ÷ (1 − margin).

Worked examples

25% margin on $75.00 cost

  • Sell price: $100.00
  • Markup: 33.33%
  • Cost multiplier: × 1.3333
  • Profit: $25.00

50% markup

  • Margin: 33.33%
  • Cost multiplier: × 1.5

30% margin

  • Markup: 42.86%
  • Cost multiplier: × 1.4286

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