// by seankriegler.com
Markup vs Margin Calculator
Convert between markup percentage and profit margin — they're not the same!
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Profit
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Markup %
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Margin %
| Markup | 15% | 25% | 33% | 50% | 75% | 100% | 150% | 200% |
|---|---|---|---|---|---|---|---|---|
| Margin | 13.0% | 20.0% | 24.8% | 33.3% | 42.9% | 50.0% | 60.0% | 66.7% |
// The Difference
Markup = profit / cost × 100. Margin = profit / selling price × 100. A 50% markup = 33.3% margin. They're often confused but they're very different numbers.
// Formulas
Markup to Margin: margin = markup / (100 + markup) × 100. Margin to Markup: markup = margin / (100 - margin) × 100. A 100% markup is always a 50% margin.
// Retail Standards
Grocery: 25-30% markup. Clothing: 50-100%. Jewellery: 100-300%. Software/SaaS: 80-90% margins. Know your industry standard to price competitively.
// Common Mistake
If you want a 30% margin, don't add 30% to cost. A R100 item at 30% markup = R130 (23% margin). For 30% margin, sell at R100 / 0.7 = R142.86.