Markup to Margin Conversion Table – Markup vs Margin
Convert markup to margin and margin to markup without confusing the percentage base. Use the reference tables, formulas and $100-cost examples to check selling price and gross profit quickly.
Markup to margin conversion table
The table below starts with $100 cost. The selling-price and profit columns are only examples; the markup-to-margin relationship is the same at any cost level.
| Markup on cost | Equivalent margin | Selling price from $100 cost | Gross profit amount |
|---|---|---|---|
| 5% | 4.76% | $105 | $5 |
| 10% | 9.09% | $110 | $10 |
| 15% | 13.04% | $115 | $15 |
| 20% | 16.67% | $120 | $20 |
| 25% | 20% | $125 | $25 |
| 30% | 23.08% | $130 | $30 |
| 33.33% | 25% | $133.33 | $33.33 |
| 40% | 28.57% | $140 | $40 |
| 50% | 33.33% | $150 | $50 |
| 60% | 37.5% | $160 | $60 |
| 75% | 42.86% | $175 | $75 |
| 100% | 50% | $200 | $100 |
| 125% | 55.56% | $225 | $125 |
| 150% | 60% | $250 | $150 |
| 200% | 66.67% | $300 | $200 |
| 250% | 71.43% | $350 | $250 |
| 300% | 75% | $400 | $300 |
Rounded to two decimals where needed. Formula: margin = markup ÷ (100 + markup) × 100.
Margin to markup conversion table
If your target is expressed as margin rather than markup, use this reverse table. Again, the price example assumes $100 cost so the percentage relationship is easy to see.
| Target margin | Required markup | Selling price from $100 cost | Gross profit amount |
|---|---|---|---|
| 5% | 5.26% | $105.26 | $5.26 |
| 10% | 11.11% | $111.11 | $11.11 |
| 15% | 17.65% | $117.65 | $17.65 |
| 20% | 25% | $125 | $25 |
| 25% | 33.33% | $133.33 | $33.33 |
| 30% | 42.86% | $142.86 | $42.86 |
| 33.33% | 49.99% | $149.99 | $49.99 |
| 35% | 53.85% | $153.85 | $53.85 |
| 40% | 66.67% | $166.67 | $66.67 |
| 45% | 81.82% | $181.82 | $81.82 |
| 50% | 100% | $200 | $100 |
| 55% | 122.22% | $222.22 | $122.22 |
| 60% | 150% | $250 | $150 |
| 65% | 185.71% | $285.71 | $185.71 |
| 70% | 233.33% | $333.33 | $233.33 |
| 75% | 300% | $400 | $300 |
Rounded to two decimals where needed. Formula: markup = margin ÷ (100 − margin) × 100.
The two formulas
Markup → margin
Example: 50% markup → 50 ÷ 150 × 100 = 33.33% margin.
Margin → markup
Example: 40% margin → 40 ÷ 60 × 100 = 66.67% markup.
Why the percentages are different
Markup and margin can describe the same dollar profit while showing different percentages because they use different denominators.
If cost is $100 and selling price is $150, gross profit is $50.
The profit amount is identical in both calculations. Only the percentage base changes. This is why entering a margin target into a markup field can produce a price that is too low.
For a fuller explanation with business examples, see Markup vs Margin.
Quick reference: common pricing pairs
| If you use... | The equivalent is... | Practical interpretation |
|---|---|---|
| 20% markup | 16.67% margin | $100 cost → $120 price → $20 profit |
| 25% markup | 20% margin | $100 cost → $125 price → $25 profit |
| 33.33% markup | 25% margin | $100 cost → about $133.33 price |
| 50% markup | 33.33% margin | $100 cost → $150 price |
| 66.67% markup | 40% margin | $100 cost → about $166.67 price |
| 100% markup | 50% margin | $100 cost → $200 price |
| 200% markup | 66.67% margin | $100 cost → $300 price |
How to calculate selling price from markup
If cost is $80 and markup is 35%:
Profit is $28. The corresponding margin is $28 ÷ $108 × 100 = approximately 25.93%.
Use the Markup Calculator when you want the calculation from your own cost and markup.
How to calculate selling price from a target margin
If cost is $80 and the target margin is 35%:
This is much higher than adding 35% markup to the same $80 cost. The required markup is about 53.85%.
Use the Profit Margin Calculator when the target is stated as margin.
Which cost should you use?
The table converts percentages correctly only after you have chosen the cost base. Depending on the decision, that cost might be purchase cost, direct product cost, full unit cost or another internally defined cost basis.
For simple retail markup, purchase or landed cost may be the starting point. For manufacturing or service pricing, a fuller cost base may be needed. If you include overhead in one comparison but exclude it in another, the percentage conversion remains mathematically correct while the business comparison becomes misleading.
When building a price from direct cost, labor and allocated overhead, use the Cost-Plus Pricing Calculator.
Margin is not the same as contribution margin
Gross margin and contribution margin may use similar-looking formulas but subtract different costs. Gross margin typically uses a gross-profit cost basis, while contribution margin subtracts costs that vary with sales volume for cost-volume-profit analysis.
This distinction matters for break-even decisions. A product can show an attractive gross margin but still have a lower contribution margin after payment fees, commissions or variable fulfillment costs are included.
For break-even planning, use the Contribution Margin Calculator and Break-even Calculator.
Does your conversion result look realistic?
- A positive markup should always produce a lower numerical margin percentage than the markup percentage.
- 100% markup should equal 50% margin.
- 50% margin should require 100% markup.
- As target margin approaches 100%, the required markup rises very rapidly.
- If your calculation says 40% margin equals 40% markup, the percentage bases have been mixed up.
Common markup and margin mistakes
| Mistake | Why it matters | Better approach |
|---|---|---|
| Adding target margin directly to cost | Produces markup, not the requested margin | Use price = cost ÷ (1 − margin rate) |
| Comparing percentages with different cost bases | The arithmetic may be right but business meaning differs | Define the same cost basis first |
| Including tax in one price but not the other | Distorts the margin comparison | Compare consistent net or tax-inclusive values |
| Calling contribution margin “gross margin” | Different costs may be deducted | Name the cost definition explicitly |
| Using margin as a guaranteed net-profit percentage | Other operating costs still need to be covered | Continue to contribution, break-even and target-profit analysis |
For business and economics students
The easiest way to remember the difference is to identify the denominator before calculating the percentage: markup divides by cost, margin divides by selling price.
Exercise 1
Cost is $60 and markup is 50%. Find price and margin.
Show answer
Price = $60 × 1.50 = $90. Profit = $30. Margin = $30 ÷ $90 = 33.33%.
Exercise 2
Cost is $60 and target margin is 40%. Find price and required markup.
Show answer
Price = $60 ÷ 0.60 = $100. Profit = $40. Markup = $40 ÷ $60 = 66.67%.
Exercise 3
A price is $200 and cost is $120. Find markup and margin.
Show answer
Profit = $80. Markup = $80 ÷ $120 = 66.67%. Margin = $80 ÷ $200 = 40%.
Continue from percentage conversion to pricing decisions
Convert the percentage first, then test the price against costs, contribution and realistic sales volume.