My business partner says our margin is 50% but I calculated 33%. Who is right?

Both figures can be correct depending on what is being measured. If cost is $100 and price is $150, profit is $50. $50/$100 = 50% markup. $50/$150 = 33.3% margin. Ask whether the figure is 'profit over cost' (markup) or 'profit over revenue' (margin) — that resolves the apparent disagreement.

What is a 'gross multiplier'?

The gross multiplier (also called keystone, cost multiplier, or factor) is simply price ÷ cost. A 100% markup gives a 2.0× multiplier (double the cost). Retail buyers often use multipliers directly — 'we keystone at 2.5×' means a 150% markup — because multiplying cost by a factor is simpler than adding percentages during fast-paced buying decisions.

Finance Calculators

Markup vs Margin Calculator

The problem: Markup and margin are two different ways to express profit — but quoting the wrong one to a client or partner causes serious pricing errors.

ASG Privacy VerifiedVerified

100% In-Browser Execution. Zero server uploads. Your data never leaves this tab — disconnect your internet and the tool keeps working.

ASG Privacy VerifiedVerified

100% In-Browser Execution. Zero server uploads. Your data never leaves this tab — disconnect your internet and the tool keeps working.

Quick reminder: Markup is calculated on cost. Margin is calculated on selling price. A 50% markup ≠ 50% margin. This tool clarifies the difference.

Inputs

Cost Price

Your cost to produce/buy the item

Markup %

Profit as % of cost

📊 100% markup = 50.00% margin

Cost

$50.00

your input cost

Selling Price

$100.00

what you charge

Gross Profit

$50.00

revenue − cost

Gross Multiplier

×2.00

price ÷ cost

Markup

100.00%

profit ÷ cost × 100

Gross Margin

50.00%

profit ÷ price × 100

Markup ↔ Margin Conversion Reference

Markup %	= Margin %	Multiplier
20%	16.7%	×1.20
25%	20.0%	×1.25
33.33%	25.0%	×1.33
50%	33.3%	×1.50
75%	42.9%	×1.75
100%	50.0%	×2.00
150%	60.0%	×2.50
200%	66.7%	×3.00

Markup vs Margin Calculator: the complete guide

A markup and margin calculator clarifies the frequent confusion between two related but different ways of expressing profit. Markup is profit expressed as a percentage of cost: a 50% markup on a $100 item means $50 profit and a $150 selling price. Gross margin is the same profit expressed as a percentage of selling price: that same $50 profit on a $150 selling price is a 33.3% margin, not 50%. Quoting the wrong figure to a business partner, investor or client leads to pricing errors that compound across thousands of transactions. This tool converts between markup and margin in both directions, calculates selling price from either, and provides a reference conversion table.

The mathematical relationship between markup and margin

The two formulas use the same profit figure but different denominators. Markup = profit ÷ cost × 100. Margin = profit ÷ price × 100. Since price = cost + profit, the two are related by: margin = markup ÷ (100 + markup) × 100, and markup = margin ÷ (100 − margin) × 100. The practical consequence: margin is always lower than the equivalent markup percentage. A 100% markup (doubling the cost) equals a 50% margin. A 50% markup equals a 33.3% margin. A 25% markup equals a 20% margin. This systematic under-reporting of margin relative to markup is why retail businesses report 'margins' that sound lower than the markup their pricing teams use — they are measuring the same profitability from different reference points.

Which metric to use when

Markup is more natural during the costing phase — you know what something costs, and you want to add a percentage to arrive at the price. It compounds simply across a supply chain: a 50% manufacturer markup followed by a 50% retailer markup results in the price being 2.25× the original cost. Gross margin is preferred for financial reporting and investor communication because it is directly comparable to gross margin percentages in public company filings, which are always measured as a percentage of revenue. Retail and e-commerce businesses typically track both: markdown pricing decisions use margin to understand revenue impact, while sourcing decisions use markup to negotiate supplier costs.

Step by step: how to use Markup / Margin

1
Choose your calculation mode: Cost + Markup → Price, Cost + Margin → Price, or Cost + Price → Both.
2
Enter your cost price and either markup percentage or gross margin percentage.
3
Read the selling price, gross profit, markup and gross margin in the results.
4
Switch modes to check the same scenario from a different angle.
5
Scroll to the conversion table for a quick reference across common markup values.

Security & privacy

Arithmetic runs locally — your cost structures and pricing strategy are commercially sensitive and never leave your browser.