Pricing
Markup to margin, converted.
Type a markup and see the gross margin that goes with it, plus the price and profit on a $100 cost.
Margin % = markup % / (100 + markup %) x 100. A 25% markup is a 20% margin, a 50% markup is a 33.33% margin and a 100% markup is a 50% margin.
Your numbers
Result
Worked example
A 25% markup on a $100 cost gives a $125 price and $25 profit. Margin divides that $25 by the $125 price, not the $100 cost: 25 / 125 = 20.00%. With the formula: 25 / (100 + 25) x 100 = 20.00%.
How it works
Margin = markup / (100 + markup). The profit is the same; only the base changes. Markup uses cost as the base and margin uses price, and price is always cost plus profit, so the margin is always the smaller number for a positive markup. As markup grows the margin approaches 100% but never reaches it. To go the other way use the margin to markup converter.
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
| Markup | Margin | Price on $100 cost |
|---|---|---|
| 10% | 9.09% | $110.00 |
| 15% | 13.04% | $115.00 |
| 20% | 16.67% | $120.00 |
| 25% | 20.00% | $125.00 |
| 30% | 23.08% | $130.00 |
| 40% | 28.57% | $140.00 |
| 50% | 33.33% | $150.00 |
| 60% | 37.50% | $160.00 |
| 75% | 42.86% | $175.00 |
| 100% | 50.00% | $200.00 |
Common mistakes
- Thinking a 50% markup earns a 50% margin. It earns a 33.33% margin.
- Subtracting instead of using the formula. Markup minus margin is not a constant gap: 25% vs 20% is 5 points, 100% vs 50% is 50 points.
- Quoting one when the other is meant. A retailer saying "keystone" means a 100% markup, which is a 50% margin.
- Using a negative markup without noticing it means selling below cost and gives a negative margin.
FAQ
How do I convert markup to margin?
Divide the markup by 100 plus the markup, then multiply by 100. For a 25% markup that is 25 / 125 x 100 = 20%.
What margin is a 50% markup?
A 50% markup is a 33.33% gross margin, because the profit is one third of the price.
What margin is a 100% markup?
A 100% markup, where the price is double the cost, is a 50% gross margin.
Why is margin always lower than markup?
They share the same profit, but margin divides it by the larger number (price) while markup divides it by the smaller one (cost).