Markup to Margin Calculator – Convert Markup % to Margin %

Understanding the difference between markup and margin is crucial in pricing, profitability analysis, and financial decision-making. Many business owners mistakenly use them interchangeably, but they are not the same.

This Markup to Margin Calculator helps you instantly convert a given markup percentage into its equivalent profit margin percentage, ensuring you price your products correctly and protect profitability.

What is Markup?

Markup is the percentage added to the cost price of a product to determine its selling price.

$\text{Markup (\%)}=\frac{\text{Selling Price}-\text{Cost Price}}{\text{Cost Price}}\times 100$

What is Margin?

Margin (or profit margin) is the percentage of the selling price that represents profit.

$\text{Margin (\%)}=\frac{\text{Selling Price}-\text{Cost Price}}{\text{Selling Price}}\times 100$

Formula to Convert Markup to Margin

If you only know the markup percentage and want to calculate the margin, use this formula:

$\text{Margin (\%)}=\frac{\text{Markup (\%)}}{100+\text{Markup (\%)}}\times 100$

Example Calculation

👉 Suppose a product has a markup of 50%. Let’s convert it into a margin.

$\text{Margin (\%)}=\frac{50}{100+50}\times 100$​​​​​​​

$\text{Margin (\%)}=\frac{50}{150}\times 100$

$\text{Margin (\%)}=33.33\%$

So, a 50% markup is equivalent to a 33.33% margin.

Why Use a Markup to Margin Calculator?

• Avoid pricing mistakes.
• Understand true profitability.
• Ensure competitive but profitable pricing.
• Simplify conversion without manual formulas.