Back to the lesson

Owner Track worksheet

Markup vs Margin: Formulas, Conversion Chart & Calculator

The formula

Markup = (Price − Cost) ÷ Cost

Margin = (Price − Cost) ÷ Price

Price (from margin) = Cost ÷ (1 − Margin %)

Illustrative example

Examples use made-up numbers. Education only, not tax, legal or investment advice.

CostMarkup %PriceGross ProfitMargin %
$100.0033⅓%$133.33$33.3325.00%
$100.0025%$125.00$25.0020.00%
$100.0050%$150.00$50.0033.33%
$100.00100%$200.00$100.0050.00%

Your numbers

CostMarkup %PriceGross ProfitMargin %
     
     
     
     
     

Estimates depend on your inputs.