Convert between markup percentage and profit margin. Calculate selling price from cost and desired profit.
| Product Cost | $100 |
| Selling Price | $150 |
| Profit per Unit | $50 |
| Markup % | 50.00% |
| Profit Margin % | 33.33% |
| Profit on $1,000 revenue | $333 |
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Markup % = (Price − Cost) ÷ Cost × 100
Margin % = (Price − Cost) ÷ Price × 100
Price = Cost × (1 + Markup %)
Price = Cost ÷ (1 − Margin %)
Markup is the percentage added to cost to set price: (Price - Cost) ÷ Cost × 100. Margin is the percentage of revenue that's profit: (Price - Cost) ÷ Price × 100. A 100% markup = 50% margin. They're different because margin divides by price (larger denominator).
100% markup means: Cost $100 → Price $200 → Profit $100. Margin = $100 ÷ $200 = 50%. Margin is always lower than markup at the same percentage because it divides by the larger number (price, not cost).
Use the formula: Markup % = (Margin % ÷ (100 - Margin %)) × 100. Example: For 40% margin, Markup = (40 ÷ 60) × 100 = 66.67%. This calculator does the conversion instantly.
It varies by industry. Retail: 25-35%, eCommerce: 20-40%, Services: 50-70%, Software: 60-80%. Higher margins allow for discounts, marketing, and growth. Always cover costs + overhead + profit target.
No. Negative margin means selling below cost, causing losses. If your margin is negative, you're losing money on each sale. Review costs, pricing strategy, and sales volume.
Price = Cost ÷ (1 - Margin %). Example: $100 cost with 40% margin target: Price = $100 ÷ 0.60 = $166.67. This ensures 40% of revenue is profit.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.