Convert margin and markup
Choose the direction, enter the percentage you already know, and the converter will calculate the matching rate plus the price structure that sits behind it.
Quick scenarios for the most common conversions.
Calculator
Margin Markup Converter
Convert margin to markup or markup to margin without doing the algebra by hand. This is the quickest way to translate between reporting language and cost-based pricing rules before you set or review a price.
Formula
How to convert margin and markup
Markup = Margin / (1 - Margin)
Margin = Markup / (1 + Markup)
If you know margin and need markup, divide margin by one minus margin. If you know markup and need margin, divide markup by one plus markup. The converter handles the math and shows the price structure behind both views.
When the converter helps
- Finance reports are written in margin but pricing rules are written in markup.
- You need to compare a supplier quote with an internal margin target.
- You want to check whether a markup rule still delivers the margin you expect.
Useful next step
Once the relationship is clear, move into the calculator that matches the job in front of you: report the margin, build the price from cost, or set the price floor.
FAQ
Common margin and markup conversion questions
What markup equals 30% margin?
A 30% margin is equivalent to a 42.86% markup. That means a $100 cost base would need a selling price of about $142.86.
What margin equals 50% markup?
A 50% markup is equivalent to a 33.33% margin. That is one of the most common places teams get confused when moving between finance reports and quoting rules.
Why is margin lower than markup?
Because margin uses selling price as the base and markup uses cost. Since selling price is the bigger number, the same profit looks smaller as a margin percentage than it does as a markup percentage.