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The 3 Simplest Markup Formulas (With Conversion Table)
Markup made simple — the three formulas you need: markup = profit ÷ cost; price = cost × (1 + markup); markup = margin ÷ (1 − margin). Includes a conversion table.
Markup is profit expressed as a share of cost. Three formulas cover 95% of pricing situations.
Formula 1: the definition
Markup = (Price − Cost) ÷ Cost × 100%
Cost $60, price $90: markup = 30 ÷ 60 = 50%.
Formula 2: price from markup
Price = Cost × (1 + markup)
Cost $60 with a 50% markup: price = 60 × 1.5 = $90.
Formula 3: markup ↔ margin
Margin = markup ÷ (1 + markup) Markup = margin ÷ (1 − margin)
A 50% markup equals a 33.3% margin. Two anchors worth memorizing: markup 100% = margin 50%, and margin 25% = markup 33.3%.
Quick conversion table
| Markup | Equals margin |
|---|---|
| 15% | 13.0% |
| 25% | 20.0% |
| 33.3% | 25.0% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50.0% |
| 150% | 60.0% |
| 200% | 66.7% |
The full table lives on the markup calculator — enter cost plus any one of price, markup, or margin and get the rest instantly.
When to use which
- Quoting and cost-plus pricing: markup (“add 30% on cost”) is how buyers and sellers talk
- Benchmarking health: margin — industry data like the industry average margin table is quoted in margin terms
- Always confirm which one the other side means: mixing up 50% and 33.3% can erase your profit