# Margin to markup calculator and conversion table | WebKoding

Convert a profit margin into the markup that produces it, and back. With a table of the common pairs.

Source: https://webkodingtheme.com/tools/margin-to-markup-calculator/

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Free tool

# Margin to markup calculator

Type a margin and see the markup that produces it — and the reverse. Suppliers quote markups, accountants quote margins, and they are not the same number.

Margin (%)
Markup needed 66.7%
Price for a $1 cost US$1.67
Margin as markup ratio 1.67×

## How it is calculated

Markup = margin ÷ (1 − margin).
Margin = markup ÷ (1 + markup).
Common pairs: 20% margin = 25% markup; 25% = 33.3%; 33.3% = 50%; 40% = 66.7%; 50% = 100%; 60% = 150%; 75% = 300%.

## Questions

### Why is markup always higher than margin?

Both divide the same profit, but markup divides it by the cost, which is always smaller than the price. The gap grows quickly: at a 75% margin the markup is 300%.

### Which one should I report?

Margin. It tells you how much of every sale is left to pay for everything else, and it is how financial statements and most benchmarks express profitability.

### Can a markup be over 100%?

Yes, and it often is. A margin cannot reach 100%, but a markup has no upper limit.

## If you run WooCommerce

WooFinance puts the real margin on every WooCommerce order, so the number you set and the number you keep can be compared. WooFinance is our plugin; the calculator above works the same whether you use it or not.

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