Pricing
Margin to markup, converted.
Type the gross margin you want and see the markup on cost that delivers it, plus the price on a $100 cost.
Markup % = margin % / (100 - margin %) x 100. A 20% margin needs a 25% markup, a 33.33% margin needs 50% and a 50% margin needs 100%.
Your numbers
Result
Worked example
You want a 20% gross margin on a $100 cost. Markup is margin / (100 - margin) = 20 / 80 = 25.00%, so the price is $100 x 1.25 = $125. Check: profit $25 divided by the $125 price is 20%. Adding a 20% markup instead would give a $120 price and only a 16.67% margin.
How it works
Markup = margin / (100 - margin). Margin is capped below 100%, because a 100% margin would need a cost of zero, so the formula has no answer there and the tool rejects it. Margins at or near 100% give huge markups (a 99% margin is a 9,900% markup). A negative margin means pricing below cost and gives a negative markup.
Sources and basis (retrieved 2026-10): arithmetic on your inputs using the standard textbook definitions of markup (profit / cost) and gross margin (profit / price). No outside data or third-party figures are used.
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Quick reference table
| Margin | Markup needed | Price on $100 cost |
|---|---|---|
| 10% | 11.11% | $111.11 |
| 20% | 25.00% | $125.00 |
| 25% | 33.33% | $133.33 |
| 30% | 42.86% | $142.86 |
| 40% | 66.67% | $166.67 |
| 50% | 100.00% | $200.00 |
| 60% | 150.00% | $250.00 |
| 70% | 233.33% | $333.33 |
| 75% | 300.00% | $400.00 |
| 80% | 400.00% | $500.00 |
Common mistakes
- Using the margin as the markup. A 30% target margin needs a 42.86% markup, not 30%.
- Entering 100% margin. It needs a zero cost and is impossible with real costs.
- Mixing bases inside one price list: quoting some items by markup and others by margin makes them hard to compare.
- Forgetting that fees and discounts come off the price, so the margin you achieve after them is lower than the target you converted.
FAQ
How do I convert margin to markup?
Divide the margin by 100 minus the margin, then multiply by 100. A 30% margin is 30 / 70 x 100 = 42.86% markup.
What markup gives a 50% margin?
A 100% markup. The price is double the cost, and the profit is half the price.
Why can I not enter 100% margin?
A 100% margin means the cost is zero, so no markup on cost can produce it. Margin must stay below 100%.
What markup gives a 40% margin?
A 66.67% markup: 40 / 60 x 100. A $60 cost then sells for $100.