Calculate Margin from Markup - Markup to Margin Converter
Convert markup percentage to profit margin (and vice versa). Understand the difference between markup and margin.
Convert
%
Enter your markup %
Example Calculation (Optional)
$
To see dollar amounts
Results
Markup Percentage
50.0%
Based on cost
Margin Percentage
33.3%
Based on price
Difference
16.7%
Percentage point difference
Dollar Example
Cost:$100.00
Selling Price:$150.00
Profit:$50.00
Understanding the Difference
A 50.0% markup equals a 33.3% margin. Markup is calculated on cost, while margin is calculated on price. That's why a 50% markup is NOT the same as a 33% margin.
Quick Reference
Markup= Margin
50%33.3%
100%50%
150%60%
200%66.7%
Why Markup and Margin Are Different
Many business owners confuse markup and margin, but they're calculated differently and represent different things:
- Markup is the percentage added to your cost to get the selling price. It's calculated as: (Price - Cost) / Cost × 100
- Margin (or profit margin) is the percentage of the selling price that is profit. It's calculated as: (Price - Cost) / Price × 100
Example
If a product costs $100 and you sell it for $150:
- Markup: ($150 - $100) / $100 = 50%
- Margin: ($150 - $100) / $150 = 33.3%
Which Should You Use?
- Retail and wholesale typically use markup (e.g., "We mark up products 50%")
- Finance and accounting typically use margin (e.g., "Our profit margin is 33%")
- Both are valid—just make sure you're consistent and understand which one you're using