Markup to margin converter
Convert between markup and margin instantly — and see why a 50% markup is not the same as a 50% margin.
Enter either a markup percentage or a margin percentage — the other updates automatically. Add a cost price to see the selling price and gross profit in dollars.
Markup to margin converter inputs and results
Enter either value
Profit as a percentage of cost.
Profit as a percentage of selling price.
What you pay for the item. Leave at 0 to work with percentages only.
Equivalent values
Markup
50.0%
of cost
Gross margin
33.3%
of selling price
Per $100 of selling price
Selling price
$90.00
Gross profit
$30.00
How markup and margin relate
Markup and margin describe the same dollar profit from two different angles. Markup measures profit against cost — a 50% markup means you added half the cost price on top. Margin measures the same profit against the selling price — that same dollar profit is now expressed as a fraction of the larger number, which is why it's always lower than the equivalent markup.
The conversion is straightforward: margin = markup ÷ (1 + markup), and markup = margin ÷ (1 − margin), where both figures are expressed as decimals. The gap between the two widens as margins get higher — at low margins they're fairly close, but at 80% margin the equivalent markup is 400%, which is where the confusion starts to matter in practice.
Want to see how margin holds up after shipping and platform fees are factored in? Use the product margin calculator.
About this tool
This tool converts between markup percentage and gross margin percentage in both directions. Enter either value and the other updates instantly. Optionally enter a cost price to see the corresponding selling price and gross profit in dollars. The two figures are mathematically related but not interchangeable — a 50% markup produces a 33.3% margin, not 50%, and the difference grows as numbers get larger.
Frequently asked questions
Why does a 50% markup produce a 33.3% margin, not 50%?
Markup is calculated on cost. Margin is calculated on selling price. At a 50% markup on a $60 item, you add $30 to get a $90 selling price. The $30 profit is 50% of the $60 cost (markup), but only 33.3% of the $90 selling price (margin). The denominator is different in each case, which is why the same dollar profit produces a different percentage depending on which measure you use.
Which should I use when pricing products?
Margin is generally more useful for business decisions because it expresses profit as a share of revenue — the number that appears on your income statement and that you compare against industry benchmarks, investor expectations, and platform fee percentages. Markup is useful when you're setting prices from a known cost and need a quick multiplier. The risk with markup is applying a target percentage without realising it produces a lower margin than expected.
How do I convert between them without a calculator?
Margin to markup — divide the margin by one minus the margin (both as decimals). A 40% margin is 0.40 / 0.60 = 0.667, or a 66.7% markup. Markup to margin — divide the markup by one plus the markup. A 50% markup is 0.50 / 1.50 = 0.333, or a 33.3% margin.
What's a good gross margin for an ecommerce business?
It varies significantly by category. Consumer electronics often run 10–20% because they're low-differentiation and price-competitive. Apparel and beauty can reach 50–70%. General merchandise typically falls between 30–50%. The more useful benchmark is whether your gross margin, after also accounting for platform fees and shipping, leaves enough room to cover operating expenses and still produce a net profit.