Quick answer
A $30 product with a 66.7% markup sells for $50.01, making $20.01 of profit per unit, which is a 40.0% margin. Markup is measured on cost, margin on price, so the two numbers are never equal. A 100% markup is only a 50% margin.
How the Markup Calculator works, step by step
Enter your cost per unit and either a markup percentage or a target margin. In markup mode the price is cost times one plus the markup: $30 at 66.7% gives $50.01. In margin mode the price is cost divided by one minus the margin: $30 at a 40% margin gives $50.00, the same price, because the two describe the same price from opposite sides.
The conversion identities are the heart of the tool. Margin equals markup divided by one plus markup, and markup equals margin divided by one minus margin. A 50% markup is a 33.3% margin; a 200% markup is a 66.7% margin. The table below the result lists the conversions from 10% to 300% markup so you can read them off directly.
Margin can never reach 100%, because the cost is always part of the price. Markup has no ceiling: a $30 product sold for $120 carries a 300% markup and a 75% margin. Chasing a margin above 90% means pricing at more than ten times cost, which only works for products whose cost is a tiny share of their value.
Which figure you use depends on who you are talking to. Suppliers and wholesalers quote markup, because they think in terms of cost plus a percentage. Retailers and accountants talk margin, because they think in terms of what each sale keeps. Using the wrong one in a negotiation means agreeing to a number neither side meant.
Both figures are gross: they ignore platform fees, payment processing, shipping and ads, all of which come out of the margin afterwards. A 40% gross margin on a marketplace that takes 15% leaves 25% before ads. Run the fee calculators for your channel after pricing, and treat the margin here as the starting point, not the profit you keep.
The formula
Markup mode: price = cost times (1 plus markup). Margin mode: price = cost divided by (1 minus margin). Profit = price minus cost. Markup = profit divided by cost, times 100. Margin = profit divided by price, times 100. Margin = markup divided by (1 plus markup).
Worked example — try it on the calculator above
Worked example: $30 cost, 66.7% markup, 40% margin
A product costs $30 and you apply a 66.7% markup. The price is $30 times 1.667, or $50.01. Profit is $20.01 per unit. Margin is $20.01 divided by $50.01, or 40.0%. The same price comes from the margin side: $30 divided by 0.60 is $50.00. The conversion table shows the pattern: a 50% markup is a 33.3% margin, a 100% markup is a 50% margin, and a 200% markup is a 66.7% margin. Each doubling of the markup buys less and less extra margin. That is why a supplier offering to raise your markup from 100% to 200% is offering 16.7 points of margin, not a doubling of profit.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is profit divided by cost; margin is profit divided by price. On a $30 product sold for $50.01, the $20.01 profit is a 66.7% markup and a 40.0% margin. They describe the same profit from different sides, and the two percentages are never equal.
How do I convert markup to margin?
Divide the markup by one plus the markup. A 100% markup becomes 100 divided by 200, or a 50% margin. A 50% markup becomes 50 divided by 150, or 33.3%. The conversion table on this page lists the common values from 10% to 300% markup.
Can margin be more than 100%?
No. Margin is profit divided by price, and profit is always less than price when the cost is positive, so margin always stays below 100%. Markup has no ceiling: a $30 product sold for $120 has a 300% markup and a 75% margin.
Should I price using markup or margin?
Use margin when you are deciding what a sale keeps after fees and ads, because margin is measured on the price the customer actually pays. Use markup when a supplier quotes cost-plus pricing. The calculator switches between the two, so you can price either way and see both figures.
Estimates, not advice. This calculator provides educational estimates based on the inputs you enter and the assumptions shown on this page. It is not financial, tax or investment advice, and it cannot see your full situation. Verify important figures against official sources, and consider a qualified professional for decisions about your own money. See our Disclaimer and Methodology.