FREE CALCULATOR
Markup to margin calculator
When a supplier quote or pricing rule uses markup, convert it to revenue-based margin and check the selling price on a cost example.
Your numbers
Start with the example, then make it yours.
Changes the unit only. No exchange-rate conversion.
Saved in this tab only. Reset clears saved inputs.
Your results
ProfitPilot- Example selling price
- $15.00
- Gross profit per unit
- $5.00
Where the revenue goes
- Cost per unit
- $10.00
- Profit
- $5.00
Margin divides profit by the selling price. Markup divides profit by cost. A 50% markup is a 33.33% margin.
Amounts are rounded for display; calculations use the full values. Round a target price up to your currency’s smallest unit before selling.
Behind the numbers
Behind the numbers
Margin (%) = decimal markup ÷ (1 + decimal markup) × 100
Markup (%) = decimal margin ÷ (1 − decimal margin) × 100
Selling price = cost × (1 + decimal markup)
Rates in formulas are decimals: 30% is calculated as 0.30.
A practical example
A 50% markup is not a 50% margin
A freelancer prices $80 of delivery cost with a 50% markup. The price is $120 and profit is $40. Since $40 is one third of $120, the margin is 33.33%. A 50% margin on the same cost would require a $160 price.
What this includes
- Markup is measured against cost; margin is measured against revenue.
- The example price excludes fees, overhead, and taxes. A zero cost gives a zero example price; the rate conversion is still a mathematical relationship.
- Margin must be below 100%. Markup may exceed 100%.
Common questions
Which rate should I use for pricing?
Either can describe the same price, but they are not interchangeable. If your plan says you want to keep 30% of revenue, that is a margin target. The pricing calculator can also include selling fees.
Can markup be more than 100%?
Yes. A 200% markup on a $10 cost gives a $30 price and a 66.67% margin. Margin approaches, but does not reach, 100% for a positive cost.