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.

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Your numbers

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Changes the unit only. No exchange-rate conversion.

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Your results

ProfitPilot
Gross profit margin33.33%
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.

Use these numbers inSelling priceBreak-even pointMonthly profit

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

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.