Convert between markup percentage and profit margin for a product.
Markup is profit relative to cost, while margin is profit relative to the selling price, so a 50% markup equals only a 33% margin. Confusing markup with margin is a common retail pricing error that leads to underpricing and missed profit targets.
Markup vs Margin
Selling price = cost x (1 + markup%); margin = profit / selling price x 100
Selling price = cost x (1 + markup%); margin = profit / selling price x 100 Markup is profit relative to cost, while margin is profit relative to the selling price, so a 50% markup equals only a 33% margin.
Confusing markup with margin is a common retail pricing error that leads to underpricing and missed profit targets.
This calculator takes 2 inputs: Cost price, Markup. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.