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📊Markup to Margin Converter

Convert between markup percentage and profit margin percentage.

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Tip: A 25% markup equals a 20% margin. Markup % ≠ Margin %.

About Markup to Margin Converter

Convert between markup (percentage above cost) and gross profit margin (percentage of selling price) instantly. Markup and margin are often confused — this tool clarifies the relationship, converts between the two, and calculates the selling price and profit amount from any combination of cost, markup, or margin inputs.

How to Use Markup to Margin Converter

  1. 1

    Enter cost and markup or margin

    Input your cost price and either the markup percentage or the margin percentage.

  2. 2

    Convert

    The tool instantly shows the equivalent markup, margin, selling price, and profit amount.

  3. 3

    Use the pricing data

    Apply the results to price your products correctly for your target margin.

Common Use Cases

  • Pricing products to achieve a target profit margin
  • Converting between markup and margin for financial reporting
  • Checking that supplier pricing meets margin requirements
  • Teaching the markup vs margin distinction in business education

Frequently Asked Questions

What is the difference between markup and margin?
Markup is profit as a percentage of cost: Markup% = (Profit / Cost) × 100. Margin is profit as a percentage of selling price: Margin% = (Profit / Selling Price) × 100. A 50% markup equals a 33.3% margin — they are not the same.
Which should I use in business?
Retailers typically think in margin terms (it's directly tied to revenue percentage). Manufacturers and product companies often use markup (it's directly tied to cost). Knowing both helps prevent pricing errors.

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