Business calculator

Margin to Markup Calculator

Convert profit margin to equivalent markup or markup to equivalent profit margin without confusing the two percentages.

Instant result No sign-up Editable assumptions

Enter your figures

Calculate your result

Runs in your browser

Estimate only. Platform fees, taxes and policies vary by country, account, category and date. Verify important decisions against your current statement or official fee schedule.

Margin Rate
Equivalent Markup
Markup Rate
Equivalent Margin

Calculator guide

Convert margin and markup correctly

Margin measures profit as a percentage of selling price. Markup measures profit as a percentage of cost. The same transaction therefore produces different percentages.

To convert margin to markup, divide margin by one minus margin. To convert markup to margin, divide markup by one plus markup. Enter rates below 100% for margin because a normal positive-cost sale cannot have a margin of 100% or more.

Use margin for sales and profitability reporting and markup for cost-based pricing where appropriate. Label every report clearly so teams do not compare unlike definitions.

Rounding can create small differences when converting back and forth. Keep more precision in calculations and round only for display.

Formula

Convert margin and markup correctly

Markup = Margin ÷ (1 − Margin); Margin = Markup ÷ (1 + Markup)

  1. Convert the percentage to a decimal.
  2. Apply the relevant conversion formula.
  3. Convert the result back to a percentage.
  4. Check with a simple cost-and-price example.

Worked example

Worked example

Inputs

Scenario
A 40% margin equals 66.67% markup. A 50% markup equals 33.33% margin.

Results

Result
A 40% margin equals 66.67% markup. A 50% markup equals 33.33% margin.

Rounded planning example; replace assumptions in the live calculator.

Frequently asked questions

Margin to Markup Calculator FAQ

What should I verify before using this calculator?

Verify country, platform plan, product category, tax treatment, currency and the effective date of every rate.

How accurate is the result?

The arithmetic follows the displayed formula. Accuracy depends on complete inputs, current rates and consistent treatment of taxes, refunds, shipping and other costs.

Can I use another currency?

Yes. Keep every monetary input in the same currency. The calculator does not convert exchange rates.

Should tax be included in revenue?

Use one documented convention. For profitability analysis, many sellers use revenue excluding pass-through sales tax or VAT, but local accounting rules may differ.

How should I handle refunds?

Use expected refund and return costs in planning, then reconcile with actual platform reports. Do not count refunded revenue as retained sales.

Are platform rates guaranteed?

No. Platforms can change rates by country, plan, category, payment method or contract. Verify current official documentation before a pricing decision.

Are my inputs uploaded?

No. Calculator inputs are processed locally in the browser.

Primary sources

Official references and further reading

Editorially reviewed: 2026-07-21

Continue calculating

Related calculators

View all →