Margin to Markup calculator
Enter a target profit margin. See the markup you need to apply to your cost to hit that margin.
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Fill in any two. The other two calculate automatically. Click a locked field to edit it instead.
Platform fees
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Shipping
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Tax
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Custom line items
Results
Enter values to see results
Profit
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Margin
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Markup
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After fees, shipping & tax
Net profit
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Net margin
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Net markup
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The conversion formula
Given a target margin percentage, the equivalent markup is:
Markup = Margin ÷ (1 − Margin)
Both values in decimal form. So a 30% margin (0.30) converts to 0.30 / 0.70 = 0.4286 = 42.86% markup. A 50% margin converts to 100% markup. The chart below shows common values at a glance.
Common conversions
| Margin | Markup | Plain English |
|---|---|---|
| 10% | 11.11% | commodity / restaurants |
| 20% | 25.00% | retail target |
| 25% | 33.33% | comfortable |
| 30% | 42.86% | strong |
| 33.33% | 50.00% | one-third profit |
| 40% | 66.67% | premium goods |
| 50% | 100.00% | keystone equivalent |
| 60% | 150.00% | luxury / digital |
| 70% | 233.33% | SaaS territory |
Why does the markup look so much bigger?
Markup divides by cost; margin divides by the larger selling price. Same profit dollar, smaller denominator (cost) means a bigger percentage. This is exactly why "50% markup" sounds healthier than "33% margin" but means the same thing.