Markup to Margin calculator
Enter a markup percentage you're applying. See the resulting profit 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 markup percentage applied to cost, the resulting margin is:
Margin = Markup ÷ (1 + Markup)
Both values in decimal form. So a 50% markup (0.50) converts to 0.50 / 1.50 = 0.333 = 33.33% margin. A 100% markup converts to 50% margin. The chart below shows common values.
Common conversions
| Markup | Margin | Plain English |
|---|---|---|
| 10% | 9.09% | barely profitable |
| 25% | 20.00% | retail target |
| 33.33% | 25.00% | comfortable |
| 50% | 33.33% | one-third profit |
| 66.67% | 40.00% | premium goods |
| 100% | 50.00% | keystone pricing |
| 150% | 60.00% | luxury / digital |
| 200% | 66.67% | boutique fashion |
| 300% | 75.00% | high-margin services |
| 1000% | 90.91% | pure digital products |
Watch for the 50/50 trap
If your accountant says "we need a 50% margin" and you apply a 50% markup, you'll only achieve a 33% margin. To actually get 50% margin, you need 100% markup. This conversion is the most expensive thing many businesses get wrong.