Convert a profit margin into the equivalent markup — and back — so you price with the number you actually mean.
Margin is profit as a share of the selling PRICE; markup is profit as a share of the COST. Confusing the two systematically underprices — this converts cleanly between them. General information.
Both describe profit, but against different bases: margin is a share of the price, markup a share of the cost. A 50% markup is only a 33% margin. Mixing them up is one of the most common — and costly — pricing mistakes.
Markup = margin ÷ (1 − margin) · Margin = markup ÷ (1 + markup)
If you want a 40% margin but apply a 40% markup, you'll fall short every sale. The gap widens as the numbers grow — always convert to the one you mean.
Markup is easier at the counter (cost × factor); margin is what shows up in your P&L. Know both and the conversion between them.
Related: markup calculator · profit margin calculator · gross profit calculator · all free calculators.
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It uses standard formulas and recalculates the moment you change a value, so the math is exact for the inputs you enter. Treat the result as a reliable planning estimate; for decisions with legal or tax consequences, confirm the figures with a qualified professional.
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Last reviewed: September 2026. Free to use, no signup — Margin to Markup Calculator by ToolWise Digital.
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