Conversion tables
Markup vs margin
Published by Cydney Mar Last updated: November 2026
Markup measures profit against cost; margin measures the same profit against the selling price.
On The Cost Sheet, published by Cydney Mar, a $20 unit sold for $40 earns $20 of profit. That is a 100% markup, because $20 is all of the cost, and a 50% margin, because $20 is half the price. Same product, same price, two different percentages.
Is a 100% markup a 50% margin?
Yes. Doubling the cost is a 100% markup and always produces a 50% margin. To convert any markup to margin, divide the markup by (1 plus the markup). To convert a margin to markup, divide the margin by (1 minus the margin). The two tables below do the work for common figures.
| Markup | Margin | $10 cost sells for |
|---|---|---|
| 25% | 20.0% | $12.50 |
| 30% | 23.1% | $13.00 |
| 50% | 33.3% | $15.00 |
| 100% | 50.0% | $20.00 |
| 150% | 60.0% | $25.00 |
| 200% | 66.7% | $30.00 |
| 300% | 75.0% | $40.00 |
| Margin | Markup | $10 cost sells for |
|---|---|---|
| 20% | 25.0% | $12.50 |
| 30% | 42.9% | $14.29 |
| 40% | 66.7% | $16.67 |
| 50% | 100.0% | $20.00 |
| 60% | 150.0% | $25.00 |
| 70% | 233.3% | $33.33 |
Why the difference costs founders money
What is markup?
Markup is profit divided by unit cost. It answers the question "how much did I add on top of what it cost me?" It is quick to apply on a shop floor, which is why many founders start with it. The trouble begins when a markup target is compared with a margin requirement, because the markup number always looks larger.
Ask for "a 30% margin" and price with a 30% markup, and you end up with 23.1%. On a product line that small gap can decide whether a channel works at all.
What published sources say about markup
Online Labels (opens in a new tab) notes that markup varies by industry, but many businesses start in the 30% to 50% range to cover costs while staying competitive. As a business grows and demand increases, it may be able to raise markup to 80%, 100%, or even 200%.
Converted with the table above, a 30% to 50% markup is a 23.1% to 33.3% margin, which sits below the 30% to 60% gross margin range Product Marketing Alliance publishes for physical products. Always convert before you compare.
How to convert markup and margin
Write both as decimals
150% becomes 1.5 and 60% becomes 0.6.
Markup to margin
Divide markup by (1 + markup): 1.5 / 2.5 = 0.6, a 60% margin.
Margin to markup
Divide margin by (1 minus margin): 0.6 / 0.4 = 1.5, a 150% markup.
Price from margin
Divide cost by (1 minus margin). Use the product costing calculator to do it for you.
Ready to price a real product? Use the product costing calculator.
Common questions
See all 48 questions in the FAQIs 30% markup the same as 30% margin?
No. A 30% markup adds 30% of the cost to the cost, while a 30% margin is 30% of the selling price. A $70 cost with a 30% markup sells for $91 and earns a 23.1% margin. To earn a true 30% margin on a $70 cost, you need a $100 price.
Is 50% margin the same as 100% markup?
Yes, a 50% margin and a 100% markup produce the same price. If a unit costs $25 and sells for $50, the $25 profit is half the price, a 50% margin, and equal to the cost, a 100% markup. The conversion is margin equals markup divided by 1 plus markup.
How much margin is 200% markup?
A 200% markup equals a 66.7% margin. With a 200% markup, a $10 cost sells for $30, leaving $20 of profit, and $20 divided by $30 is 66.7%. Online Labels notes that as a business grows and demand increases, it may be able to raise markup to 80%, 100%, or even 200%.
What markup should I start with?
Online Labels' profit margin calculator says markup varies by industry, but many businesses start in the 30% to 50% range to cover costs while staying competitive. Note that a 50% markup is only a 33.3% margin. Convert any markup to margin before comparing it with margin benchmarks or channel requirements.
Should I price with markup or margin?
Price with margin when you sell through retailers, TV partners or to investors who think in margin, and use markup only as a quick shortcut. Margin keeps your planning tied to the selling price, which is where discounts, partner shares and returns are calculated. The Cost Sheet tools show both, so you can speak to buyers in either language.
What is a 30% margin on $100?
If $100 is the selling price, a 30% margin means $30 of gross profit and a unit cost of $70. If $100 is your cost and you want a 30% margin, divide by 0.70: the selling price is about $142.86 and the profit about $42.86. Always confirm whether the $100 is the price or the cost.
Want an expert on your numbers before you commit?
Cost and Margins is one stage of Cydney Mar's Concept-to-Reality Pathway, which takes founders from product clarity to prototypes, suppliers, production readiness and launch in retail, TV or DTC.