Margin → Markup chart

A reference table covering every margin from 5% to 90%, with the matching markup percentage and a plain-English note for context.

Margin %
Markup %
Plain English

How to read the chart

Pick the margin column on the left, find the equivalent markup on the right. Or vice-versa — the relationship is symmetric. The right-most column gives a rough sense of where that margin tends to land in real businesses.

Key conversions to memorize

  • 20% margin = 25% markup — the rough retail baseline
  • 33.33% margin = 50% markup — the "one-third profit" rule of thumb
  • 50% margin = 100% markup — also known as keystone pricing
  • 67% margin = 200% markup — typical boutique fashion
Print and pin this above your desk
If you set prices regularly, the PDF version of this chart is genuinely worth printing. Memorizing the conversions takes longer than glancing at a chart, and the 50/50 trap is too expensive to risk.

The math behind it

Every value in the chart is calculated with two formulas:

Margin from Markup
m = M ÷ (1 + M)

Where M is markup as a decimal. So 50% markup = 0.5 / 1.5 = 33.3% margin.

Markup from Margin
M = m ÷ (1 − m)

Where m is margin as a decimal. So 33.3% margin = 0.333 / 0.667 = 50% markup.