Markup vs Margin Converter
Convert markup to margin (or margin to required markup) instantly — no dollars needed, with a printable conversion chart and price multiplier.
margin = markup / (1 + markup) · markup = margin / (1 − margin)
How?
How this is calculated
Markup is profit as a share of cost; margin is profit as a share of the selling price. That is why a 25% markup is only a 20% margin — the classic small-business mix-up this tool fixes. The two are exact inverses of one another.
markup → margin = markup / (1 + markup)
margin → markup = margin / (1 − margin)
price multiplier = 1 + markup = 1 / (1 − margin)
sample price = cost × multiplier
Example: a 25% markup means 0.25 / 1.25 = 0.20, a 20% gross
margin, and a price multiplier of ×1.25 — so a $100 cost
sells for $125. Markup has no upper limit; margin can never reach 100%
(markup would be infinite), so a 100%+ margin is rejected rather than
clamped.
Optional trade bands are industry-typical net margins — a different thing from the gross margin this tool converts — shown only as a sanity check.
Formula: margin = markup / (1 + markup) · markup = margin / (1 − margin)
Sources
- Markup to Margin Calculator. Calculator Academy. Retrieved .
- Markup vs Margin Calculator. Harvest. Retrieved .
- Margin Calculator (two sets). Omni Calculator. Retrieved .