How do you convert margin to markup?

Markup = margin ÷ (1 − margin). A 30% margin is 0.30 ÷ 0.70 = 42.86% markup.

How do you convert markup to margin?

Margin = markup ÷ (1 + markup). A 50% markup is 0.50 ÷ 1.50 = 33.33% margin.

How do I set a price for a target margin?

Price = cost ÷ (1 − target margin). For a 40% margin on a cost of 60, the price is 100.

Can a margin be 100% or more?

No. A margin of 100% would mean the item cost nothing; markup has no upper limit.

Margin to Markup Conversion Formula

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Margin to Markup Converter

When you know the margin you want but price your products by adding a markup to cost, you need to convert one into the other. Because margin is profit ÷ price and markup is profit ÷ cost, the conversions are markup = margin ÷ (1 − margin) and margin = markup ÷ (1 + markup). Neither is a simple subtraction or addition.

Formula

Markup = Margin1 − Margin Margin = Markup1 + Markup Price = Cost1 − Margin

Where

Margin: profit as a share of the selling price
Markup: profit as a share of the cost
Cost: unit cost, used to find the price that hits the target

Calculator

Convert

Percentage to convert (%)

Unit cost (optional, to get the price)

Result and step-by-step solution

Equivalent markup

66.67%

Selling price on a cost of 60.00: 100.00.

Apply the conversion
Markup = 0.41 − 0.4 = 66.6667%
Price for this cost
60.00 × (1 + 0.666667) = 100.00 (check: 40.00100.00 = 40% margin)

How to use the formula

Enter a percentage and choose the direction. If you also enter a unit cost, the calculator gives the selling price that achieves the target, cost × (1 + markup), which is the same as cost ÷ (1 − margin), and it checks the result by recomputing the margin from that price.

A 40% margin needs a 66.67% markup; on a cost of 60 the price is 100. A few common pairs are worth memorising: 20% margin = 25% markup, 25% margin = 33.3% markup, 50% margin = 100% markup and 60% margin = 150% markup. The relationship is steep at high margins: a 90% margin requires a 900% markup. To work out both figures from an actual cost and price, use the markup vs margin calculator.

Frequently asked questions

How do you convert margin to markup?: Markup = margin ÷ (1 − margin). A 30% margin is 0.30 ÷ 0.70 = 42.86% markup.
How do you convert markup to margin?: Margin = markup ÷ (1 + markup). A 50% markup is 0.50 ÷ 1.50 = 33.33% margin.
How do I set a price for a target margin?: Price = cost ÷ (1 − target margin). For a 40% margin on a cost of 60, the price is 100.
Can a margin be 100% or more?: No. A margin of 100% would mean the item cost nothing; markup has no upper limit.

Last reviewed: September 26, 2026. Calculations run in your browser and were checked against numpy-financial, SciPy and published spreadsheet examples.