Margin to Markup Chart
Convert a figure that is not on the chart
Enter a cost and either a markup or a selling price. Both percentages appear together.
Fill in the fields above and the answer appears here.
Margin to markup
Read down the left for the margin you want and across for the markup that produces it. Formula: markup = margin ÷ (1 − margin).
| Margin | Markup | Price on £100 cost | Profit |
|---|---|---|---|
| 5% | 5.26% | £105.26 | £5.26 |
| 10% | 11.11% | £111.11 | £11.11 |
| 15% | 17.65% | £117.65 | £17.65 |
| 20% | 25.00% | £125.00 | £25.00 |
| 25% | 33.33% | £133.33 | £33.33 |
| 30% | 42.86% | £142.86 | £42.86 |
| 33.33% | 49.99% | £149.99 | £49.99 |
| 35% | 53.85% | £153.85 | £53.85 |
| 40% | 66.67% | £166.67 | £66.67 |
| 45% | 81.82% | £181.82 | £81.82 |
| 50% | 100.00% | £200.00 | £100.00 |
| 55% | 122.22% | £222.22 | £122.22 |
| 60% | 150.00% | £250.00 | £150.00 |
| 65% | 185.71% | £285.71 | £185.71 |
| 70% | 233.33% | £333.33 | £233.33 |
| 75% | 300.00% | £400.00 | £300.00 |
| 80% | 400.00% | £500.00 | £400.00 |
| 85% | 566.67% | £666.67 | £566.67 |
Markup to margin
The other direction, for when a supplier quotes what they add to cost. Formula: margin = markup ÷ (1 + markup).
| Markup | Margin | Price on £100 cost | Profit |
|---|---|---|---|
| 5% | 4.76% | £105.00 | £5.00 |
| 10% | 9.09% | £110.00 | £10.00 |
| 15% | 13.04% | £115.00 | £15.00 |
| 20% | 16.67% | £120.00 | £20.00 |
| 25% | 20.00% | £125.00 | £25.00 |
| 30% | 23.08% | £130.00 | £30.00 |
| 40% | 28.57% | £140.00 | £40.00 |
| 50% | 33.33% | £150.00 | £50.00 |
| 60% | 37.50% | £160.00 | £60.00 |
| 66.67% | 40.00% | £166.67 | £66.67 |
| 75% | 42.86% | £175.00 | £75.00 |
| 100% | 50.00% | £200.00 | £100.00 |
| 125% | 55.56% | £225.00 | £125.00 |
| 150% | 60.00% | £250.00 | £150.00 |
| 200% | 66.67% | £300.00 | £200.00 |
| 250% | 71.43% | £350.00 | £250.00 |
| 300% | 75.00% | £400.00 | £300.00 |
| 400% | 80.00% | £500.00 | £400.00 |
How do you use a chart like this in practice?
Mostly in conversations rather than at a desk.
Negotiating with a supplier. A distributor offering you thirty points is offering margin. A trade counter quoting thirty is almost certainly quoting markup, which works out at 23.08% of margin. Converting before you shake hands is the difference between hitting your target and missing it by seven points.
Setting a range. If the business needs 45% margin to cover overheads and leave something behind, the chart tells you to apply an 81.82% markup at the point of pricing. Adding 45% to cost instead leaves you at 31% and short.
Sense-checking a quote. Any markup above 100% means you are more than doubling cost, and any margin above 50% means the same thing in different words. Spotting that a boasted 300% markup is only a 75% margin keeps everyone honest.
The reasoning behind both formulas is in margin vs markup, and every rearrangement of them is in the margin formula.