Markup vs Margin Converter | Free Pricing Calculator

A markup vs margin converter helps contractors and business owners accurately translate between markup percentage and margin percentage. Markup is calculated on cost, while margin is calculated on selling price. Using a converter prevents common pricing errors that can erode profits. Enter either value to instantly see the equivalent, ensuring your quotes and invoices reflect the profitability you actually need.

Markup and margin are two different ways to express pricing profitability.
Markup is based on cost; margin is based on selling price.
Confusing the two leads to underpricing and lost profit.
Use this converter to switch between markup and margin instantly.
Always double-check which method your industry or client expects.

Markup vs. Margin Converter

Convert accurately — no more pricing mistakes from mixing markup and margin.

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Cost $ Markup %

Price $ Margin %

Results

Enter numbers above and click Calculate.

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About this calculator

Convert markup and margin correctly to avoid pricing errors.

What is the difference between markup and margin?

Markup is the percentage added to your cost to arrive at a selling price, while margin is the percentage of the selling price that represents profit. For example, a 50% markup on a $100 cost gives a $150 price, but the margin on that sale is only 33.3%.

Why do contractors confuse markup and margin?

Contractors often confuse the two because both are expressed as percentages and relate to pricing. However, applying a margin percentage as if it were a markup percentage will result in undercharging, meaning you earn less profit than expected on every job.

How do I convert markup to margin or margin to markup?

To convert markup to margin: Margin = Markup / (1 + Markup). To convert margin to markup: Markup = Margin / (1 – Margin). This converter does the math automatically so you can price jobs accurately without manual calculation errors.