Use margin when
- You are reviewing profitability by product or channel.
- You need to understand how much of selling price stays in the business.
- You are comparing commercial quality across categories.
Guide
Margin Markup Table
Use this quick-reference table when you need to convert between margin and markup without doing the algebra from scratch. It is especially useful for quoting, price ladders, and sanity-checking whether the percentage in front of you belongs on cost or on selling price.
Formula
How the conversion works
Margin and markup are related, but they are not interchangeable. Margin measures profit as a share of selling price. Markup measures profit as a share of cost.
Markup % = (Margin % / (100 - Margin %)) × 100
Margin % = (Markup % / (100 + Markup %)) × 100
Reference Table
Common margin and markup conversions
This table assumes a $100 cost base so the selling-price example is easy to read. The same percentage relationships apply at any scale.
| Margin % | Equivalent markup % | Selling price on $100 cost | Gross profit on $100 cost |
|---|---|---|---|
| 10.00% | 11.11% | $111.11 | $11.11 |
| 15.00% | 17.65% | $117.65 | $17.65 |
| 20.00% | 25.00% | $125.00 | $25.00 |
| 25.00% | 33.33% | $133.33 | $33.33 |
| 30.00% | 42.86% | $142.86 | $42.86 |
| 35.00% | 53.85% | $153.85 | $53.85 |
| 40.00% | 66.67% | $166.67 | $66.67 |
| 45.00% | 81.82% | $181.82 | $81.82 |
| 50.00% | 100.00% | $200.00 | $100.00 |
| 55.00% | 122.22% | $222.22 | $122.22 |
| 60.00% | 150.00% | $250.00 | $150.00 |
A good shorthand to remember is that markup is always higher than margin for the same underlying economics. A 50% margin is not a 50% markup. It is a 100% markup.
Use markup when
- You start from cost and need to build a price.
- You are creating price lists or quoting rules.
- You need a repeatable pricing multiplier on top of cost.
FAQ
Common questions about margin and markup tables
Why is markup always higher than margin?
Because markup is measured against cost and margin is measured against selling price. Selling price is the larger base, so the margin percentage ends up lower.
What does 30% margin equal in markup?
A 30% margin is equivalent to a 42.86% markup. On a $100 cost base, that means a selling price of about $142.86.
Why does 50% margin equal 100% markup?
Because a 50% margin means profit is half of selling price. On a $100 cost base, that produces a $200 selling price and $100 profit, which is a 100% markup on cost.
Next steps
Use the live tools when the table gets you close
The table is useful for fast reference. When the exact target matters, switch into the calculator or converter and use the real number.