Markup vs Margin Calculator
The #1 pricing confusion. Convert between markup and margin both ways, with the actual price math.
Markup ≠ margin. A 100% markup is a 50% margin. A 200% markup is a 67% margin. Markup uses cost as the denominator ((price − cost) / cost). Margin uses price as the denominator ((price − cost) / price). The two diverge fast.
Why it matters: investors, partners and most accounting tools speak in margins. Wholesale, distribution and factory quotes usually quote in markup. Mixing them is the #1 ecommerce pricing mistake.
About this tool
A 50% markup is not a 50% margin (it's 33%). Mixing them up is the most common pricing mistake in ecommerce. This tool converts both directions from cost or price, and shows the resulting profit and percentages clearly.
The cheat sheet
- • 50% markup = 33% margin
- • 100% markup = 50% margin
- • 150% markup = 60% margin
- • 200% markup = 67% margin
- • 300% markup = 75% margin
- • 400% markup = 80% margin
When to use each
Use markup when pricing from cost (most retail decisions, factory negotiations). Use margin when analysing profitability or talking to investors and finance teams. Quoting markup as margin (or vice versa) is the single most common ecommerce pricing mistake.
Frequently asked questions
What's the difference between markup and margin? +
Markup is the percentage above cost (price as a % of cost). Margin is the percentage of the selling price kept as profit. A 100% markup is a 50% margin. A 200% markup is a 67% margin. They diverge fast, the #1 ecommerce pricing mistake is using one when you meant the other.
Which should I use, markup or margin? +
Markup when pricing from cost (most retail decisions, factory quotes, distributor conversations). Margin when analysing profitability, talking to investors, or setting financial targets. Always specify which you mean, 'a 50% margin product' is very different from 'a 50% markup product'.
Is 'keystone pricing' markup or margin? +
Markup. Keystone = 100% markup = 2x cost. In margin terms, that's a 50% gross margin. It's the apparel and lifestyle industry default because it leaves both you and any reseller with workable contribution.
How do I convert markup to margin? +
Margin = Markup / (1 + Markup). So a 50% markup → 50/150 = 33.3% margin. A 200% markup → 200/300 = 66.7% margin. This calculator does the conversion both ways automatically.
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