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
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
