Enter the markup percentage into the calculator to convert the markup to a margin percent.

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## Markup to Margin Formula

The following equation can be used to convert markup to margin.

Mg = Mp / (1+Mp)

- Where Mg is the margin rate
- Mp is the markup rate

To calculate margin from markup, divide the markup rate by 1 plus the markup rate.

## Markup to Margin Definition

A markup is a measure of the total % above cost that good is sold at and the margin is defined as the % of gross profit to gross price.

## Markup to Margin Example

How to convert markup to margin?

**First, determine the markup percentage.**For this example we will take a markup of 50%.

**Next, calculate the markup.**Using the formula above we can calculate the markup using the formula and that comes out to be .50/ (1+.50) = 33.33 % margin.

## FAQ

**What is the difference between markup and margin?**

A markup is a percentage above the cost that a product is sold at. A margin is a percentage of profit to the total price the product is sold at.