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

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?

  1. First, determine the markup percentage.

    For this example we will take a markup of 50%.

  2. 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.