Quick Answer: Markup = (Selling Price − Cost) ÷ Cost × 100. A 50% markup equals a 33.3% margin — not 50%. Enter cost and selling price below to get markup %, margin %, and the instant conversion between both.
Confusing markup with margin is the #1 reason small businesses underprice. Calculate both — and convert between them — in seconds.
Calculate markup % and instantly see the equivalent margin
Markup is calculated from cost. Margin is calculated from revenue. A $60 item with a 50% markup sells for $90 — that's a 33.3% margin, not 50%. Business owners who price using markup and mentally plan for a 50% margin are actually operating 16.7 points below target. On $500,000 in annual revenue, that's $83,500 in missing profit. Use this calculator every time you set a price.
Last Verified: May 2026 | Verified by: TheMarginCalculator.com Research Team | Report a Data ErrorReviewed by Marcus R., Lead Financial Analyst. Markup formulas verified against standard retail and wholesale pricing conventions. Meet the full team.
Both measure the same profit dollars from different angles. Markup divides profit by cost. Margin divides profit by selling price. Because the denominator is different, the percentages are always different — and confusing them costs money.
| Markup % | Equals Margin % | Markup needed for this Margin |
|---|---|---|
| 10% | 9.1% | — |
| 25% | 20% | 25% |
| 43% | 30% | 42.9% |
| 67% | 40% | 66.7% |
| 100% | 50% | 100% |
| 150% | 60% | 150% |