Convert between markup and margin percentages. Choose which one you know, enter it, and see the equivalent on the other basis side by side — the quickest way to stop the two being confused in a pricing discussion. Useful for traders, retailers, and buyers.
Markup and margin are the two most frequently confused terms in MENA retail and wholesale pricing. They sound similar but produce very different numbers. Markup is profit divided by cost — a 100% markup means you double the price. Margin is profit divided by revenue — a 100% margin is mathematically impossible (it would require zero cost). A 100% markup is only a 50% margin. Mix the two up and you can underprice your inventory by a third without realising it.
The Xuvilo markup and margin calculator converts between the two. Choose whether you know your markup or your margin, enter the percentage, and it returns the equivalent on the other basis, with both shown side by side. So the next time a supplier or a colleague says "let's price at 30%" you can ask "30% markup or 30% margin?" — and check the answer in three seconds.
It works on percentages alone, so the answer is the same in every currency. To turn a markup into a price, multiply your cost by (1 + markup ÷ 100); then send the priced quote or invoice with the Xuvilo quotation generator or invoice generator.
Markup → Margin: Margin = Markup ÷ (100 + Markup) × 100
Margin → Markup: Markup = Margin ÷ (100 − Margin) × 100
A 50% markup on a $10 item → selling price $15 and profit $5 → margin = $5 ÷ $15 = 33.33%
They divide the same profit by different numbers. Markup divides it by the cost; margin divides it by the selling price, which is larger, so markup is always the higher percentage. A 50% markup on a cost of SAR 100 gives a price of SAR 150: the profit of 50 is 50% of the cost but only 33.33% of the price.
Margin = Markup ÷ (100 + Markup) × 100, and Markup = Margin ÷ (100 − Margin) × 100. A 50% markup is 50 ÷ 150 × 100 = a 33.33% margin; a 40% margin is 40 ÷ 60 × 100 = a 66.67% markup. The calculator does either in one step.
Use markup when calculating your selling price from a known cost (common in retail, manufacturing, and wholesale). Use margin when analyzing profitability in your P&L, comparing to industry benchmarks, or communicating with investors (margin percentages are the financial reporting standard).
'Keystone' pricing — a 100% markup, turning a $10 cost into a $20 price — is a traditional retail benchmark and equals a 50% gross margin. Beyond that, markups vary widely by category: thin on groceries and electronics, much higher on fashion, jewellery and restaurant drinks. Benchmark against your own category and competitors, and remember that the markup must also cover your overheads.
Be careful: markup is typically applied to direct costs only (cost of goods). You must set it large enough to also cover overheads (rent, salaries, marketing) and leave a net profit. Run a break-even analysis alongside markup planning to confirm your pricing is sustainable.
Because margin is profit as a share of the selling price, it could only reach 100% if the item cost nothing, and it can never go above that. The calculator therefore asks for a margin below 100%. Markup has no such ceiling: a 300% markup is a 75% margin.
Once you have the right price, send the quote with the free Xuvilo quotation generator or bill the customer with the free invoice generator. To check the other side of the same price, use the profit margin calculator, or see the wider Xuvilo Blog.
Open the free Markup & Margin Calculator now, or browse the full business calculator suite.
