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Markup vs Margin Converter

See the difference between markup on cost and margin on selling price without mixing them up.

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Equivalent gross margin

33.33%

Markup uses cost as the denominator; margin uses selling price.

Behind the result

About this Tool

See the difference between markup on cost and margin on selling price without mixing them up.

How it works

Markup equals profit divided by cost; margin equals profit divided by selling price.

A practical way to use it

See why a 50% markup produces a 33.33% gross margin rather than a 50% margin.

Use results as a practical aid, and verify important decisions against your own source data and qualified guidance.