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.
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.