PALLAS / CONVERTER
Margin to Markup Converter
Convert gross margin to markup, or markup to gross margin. They describe the same gross profit from two different starting points, so the percentages are not interchangeable.
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Method & formula
Gross margin measures profit against the selling price. Markup measures the same profit against cost. The converter changes that denominator and gives you the equivalent percentage.
- Markup % = margin % ÷ (100 − margin %) × 100
- Margin % = markup % ÷ (100 + markup %) × 100
Example
A 40% gross margin is the same as a 66.67% markup. A 50% markup is the same as a 33.33% gross margin.
FAQ
Why can margin not be 100% here?
A 100% margin implies zero cost. With no cost as the denominator, there is no finite markup percentage to calculate.
Is markup the same as profit margin?
No. Markup is measured against cost; margin is measured against revenue or selling price.