Why are margin and markup different numbers for the same sale?

Margin is profit as a percent of selling price, while markup is profit as a percent of cost — since selling price is always higher than cost, markup% is always higher than margin% for the same sale.

Margin to Markup Converter

Margin and markup are related but different ways of expressing profitability — this calculator converts a margin percentage into its equivalent markup percentage.

Inputs

Results

Equivalent Markup: 42.86%

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Formula

Markup% = Margin% / (100 − Margin%) × 100

Learn How This Works

Profit Margin vs. Markup: Why They're Never the Same Number

The math showing exactly why margin and markup differ for the same sale, with a worked example and a conversion formula.

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