All tools
BusinessStaff pick

Markup vs Margin Converter

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

Ready to use Runs in your browser

Equivalent gross margin

33.33%

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

About this tool

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.