Formulas
- Markup = (price − cost) ÷ cost
- Margin = (price − cost) ÷ price
- Margin = markup ÷ (1 + markup); markup = margin ÷ (1 − margin)
A 50% markup is only a 33.3% margin. Freelancers reselling software, stock assets, printing or subcontracted work often quote a markup but think in margins — which leaves less profit than expected. Check whole projects with the profit margin calculator.
Quick table
| Markup | Margin |
|---|---|
| 20% | 16.7% |
| 25% | 20% |
| 50% | 33.3% |
| 66.7% | 40% |
| 100% | 50% |
| 200% | 66.7% |