Margin to Markup Converter
Convert between profit margin and markup in either direction — the same profit measured against price versus against cost.
How it works
Markup = margin ÷ (100 − margin) × 100 · Margin = markup ÷ (100 + markup) × 100
Margin and markup describe the same profit against two different bases: margin divides profit by the selling price, markup divides it by the cost. Because the price is always larger than the cost, the margin percentage is always the smaller number. These two formulas convert cleanly in either direction, which stops the classic pricing error of applying a markup when you meant a margin.
Worked example
A 40% margin converts to a markup of 40 ÷ (100 − 40) = 66.7%. Going the other way, a 50% markup is a margin of 50 ÷ (100 + 50) = 33.3% — the same dollars, a different denominator.
Frequently asked questions
Why is markup always higher than margin?
Both measure the same profit, but markup divides it by the smaller number (cost) while margin divides it by the larger number (price). Dividing by a smaller base yields a larger percentage, so markup always exceeds the equivalent margin.
What is keystone pricing in these terms?
Keystone means doubling the cost — a 100% markup. Converted, that is only a 50% margin, because the same profit measured against the doubled price is half of it.
Which should I quote to a client or investor?
Income statements and profitability metrics use margin, so that is the more standard figure to report. Markup is a pricing shortcut off cost; convert it to margin before comparing across products or businesses.
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Educational estimate, not financial advice.