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Markup to Margin Conversion Chart

Markups from 10% to 300% next to the gross margin it gives, and margins converted back to markup.

By PriceAndProfit Editorial Updated

75% → 42.9% Example

a 75% markup on cost gives a 42.9% gross margin: $40 cost, $70 price, $30 profit

Markup and margin describe the same profit against different bases — markup against the cost, margin against the price. To convert, use margin = markup ÷ (1 + markup). A 100% markup is a 50% margin, and the gap grows as the markup rises.

Markup to margin
MarkupMarginPrice of a $10 item
10% 9.1% $11.00
15% 13.0% $11.50
20% 16.7% $12.00
25% 20.0% $12.50
30% 23.1% $13.00
40% 28.6% $14.00
50% 33.3% $15.00
60% 37.5% $16.00
75% 42.9% $17.50
100% 50.0% $20.00
150% 60.0% $25.00
200% 66.7% $30.00
250% 71.4% $35.00
300% 75.0% $40.00
Markup = Margin ÷ (1 − Margin)
Margin to markup
Target marginMarkup needed
10% 11.1%
20% 25.0%
25% 33.3%
30% 42.9%
40% 66.7%
50% 100.0%
60% 150.0%
70% 233.3%
75% 300.0%
80% 400.0%

Both tables are pure arithmetic and hold for any currency and any cost. They describe the margin on the item itself: if your cost figure leaves out shipping, packaging or payment fees, the margin you actually keep will be lower than the chart shows.

Tip

Pricing for a target margin? Read the second table: to keep 40% of every sale you need a 66.7% markup, not 40%.

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