Margin & Markup Calculator - Margin vs Markup Converter

Is a 50% markup the same as a 50% margin?

No. A 50% markup on a $100 item gives a selling price of $150 and a profit of $50. But the margin on that sale is only 33.3%, not 50% - because margin measures profit against revenue, not cost. Confusing the two is one of the most common pricing mistakes in retail, e-commerce and wholesale. This calculator shows both numbers side by side so there is no room for error.

The core difference: Margin divides profit by the selling price. Markup divides profit by the cost. Same profit, different denominator, different percentage. A 30% margin equals a 42.86% markup. A 30% markup equals a 23.08% margin.

How to use this calculator - step by step

What do you want to calculate? - choose the direction: margin and markup from prices, or selling price from a target margin/markup.
Cost ($) - enter the purchase price or production cost of the item.
Selling price ($) - the price the customer pays (only in "from prices" mode).
Margin or Markup (%) - your target percentage (only in margin/markup modes).
Read the results - margin %, markup %, profit in dollars and the price multiplier.

Margin to markup conversion table

Print this table and keep it next to your register. The margin you want is on the left - the markup you need to apply is on the right.

Margin %	Markup %	Multiplier	Example ($100 cost)
10%	11.11%	x1.111	Sell at $111.11, profit $11.11
20%	25.00%	x1.250	Sell at $125.00, profit $25.00
25%	33.33%	x1.333	Sell at $133.33, profit $33.33
30%	42.86%	x1.429	Sell at $142.86, profit $42.86
40%	66.67%	x1.667	Sell at $166.67, profit $66.67
50%	100.00%	x2.000	Sell at $200.00, profit $100.00
60%	150.00%	x2.500	Sell at $250.00, profit $150.00

Real-world pricing examples

Coffee shop: A latte costs $1.20 to make (milk, espresso, cup, lid). Selling price: $4.50. Profit: $3.30.
Margin: 73.3% | Markup: 275% | Multiplier: x3.75

Clothing retail: A t-shirt costs $8.00 wholesale. Selling price: $24.99. Profit: $16.99.
Margin: 68.0% | Markup: 212% | Multiplier: x3.12

Electronics wholesale: A laptop costs $620. Selling price: $799. Profit: $179.
Margin: 22.4% | Markup: 28.9% | Multiplier: x1.29

Grocery store: A loaf of bread costs $1.80. Selling price: $3.49. Profit: $1.69.
Margin: 48.4% | Markup: 93.9% | Multiplier: x1.94

Freelance design: Project costs $2,400 in time and tools. Invoice: $6,000. Profit: $3,600.
Margin: 60.0% | Markup: 150% | Multiplier: x2.50

FAQ

Why does my accountant say margin and my supplier says markup?

Different perspectives. Your accountant looks at revenue and calculates what percentage is profit - that is margin. Your supplier looks at what they charge above their cost - that is markup. Both describe the same profit in dollars, just from opposite ends of the transaction. When comparing numbers, always clarify which metric is being used.

Can margin ever be higher than markup?

Never. Margin is always lower than markup for the same transaction because the denominator (selling price) is always larger than the cost. A 50% margin requires a 100% markup. The only time they match is at 0% (selling at cost, zero profit).

What is a good profit margin?

It depends heavily on the industry. Grocery: 1-3% net margin. SaaS: 70-85% gross margin. Restaurants: 3-9% net margin. Clothing: 4-13% net margin. Consulting: 15-25% net margin. The numbers here are gross margin (before overhead). Net margin after all expenses is much lower.

How do I convert margin to markup quickly?

Formula: Markup = Margin / (1 - Margin). Example: 25% margin = 0.25 / (1 - 0.25) = 0.25 / 0.75 = 0.3333 = 33.33% markup. Reverse: Margin = Markup / (1 + Markup). Example: 50% markup = 0.50 / (1 + 0.50) = 0.50 / 1.50 = 0.3333 = 33.33% margin.

What is a price multiplier?

The multiplier is the ratio of selling price to cost. If you buy at $40 and sell at $100, the multiplier is x2.50. It is the fastest way to price items: just multiply cost by the factor. A 30% margin = x1.429 multiplier. A 50% margin = x2.000 multiplier.

Can markup exceed 100%?

Absolutely. A 200% markup means the selling price is 3x the cost. Coffee shops commonly run 250-400% markups. Jewelry stores can exceed 500%. Software has effectively infinite markup since the marginal cost of a copy is near zero. Margin, on the other hand, can never exceed 100% because profit cannot be more than revenue.

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