Markup to Margin Conversion Chart
Margin = markup ÷ (100 + markup). Markup = margin ÷ (100 − margin). So a 50% markup is a 33.3% margin, and a 40% margin needs a 66.7% markup. Look up common values below, or use the markup vs. margin calculator for any number.
Markup to margin
| Markup | Margin | Price 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
| Target margin | Markup needed | Price 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.
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