Convert between margin % and markup %. The Margin vs Markup Converter takes gross margin to convert, markup to convert and returns markup for the margin entered plus margin for the markup entered, price for a 100 cost at the margin entered. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Margins tell you where the money goes between revenue and profit. Track each margin over time and against similar businesses; a falling margin while revenue grows is the signal to investigate. Use the worked example below to check the maths against your own figures.
How the Margin vs Markup Converter works
Because margin is measured against price and markup against cost, the same profit gives two different percentages. A 50% margin needs a 100% markup; a 50% markup gives only a 33.3% margin.
Worked example
With the example values (gross margin to convert of 40%, markup to convert of 66.67%), the markup for the margin entered is 66.67%; margin for the markup entered 40%, price for a 100 cost at the margin entered $166.67. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Related Calculators
Frequently Asked Questions
How is markup for the margin entered calculated?
markup = margin ÷ (1 − margin); margin = markup ÷ (1 + markup).
Which figures do I need?
Gross margin to convert, markup to convert. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good margin?
It depends on the industry: grocery and distribution run on low single-digit net margins, software and services on 20% or more. Compare with similar businesses and watch your own trend.
