Marge vs Majoration
Convertir la marge en majoration et comprendre la différence
Why 50% Markup ≠ 50% Margin
This is one of the most common pricing mistakes in business. Let's use a concrete example:
Add 50%: +$50
Price: $150
Margin: 33.3%
Target margin: 50%
Price: $200
Markup: 100%
The key difference: Markup is based on cost, while margin is based on selling price. A 50% markup only gives you a 33.3% margin because the profit ($50) is being divided by a larger number (the $150 selling price, not the $100 cost).
Margin ↔ Markup Reference Table
| Margin | Markup | Price Multiplier |
|---|---|---|
| 10% | 11.1% | ×1.11 |
| 15% | 17.6% | ×1.18 |
| 20% | 25% | ×1.25 |
| 25% | 33.3% | ×1.33 |
| 30% | 42.9% | ×1.43 |
| 33.3% | 50% | ×1.50 |
| 40% | 66.7% | ×1.67 |
| 50% | 100% | ×2.00 |
| 60% | 150% | ×2.50 |
| 66.7% | 200% | ×3.00 |
| 75% | 300% | ×4.00 |
When to Use Each
- • Reporting to stakeholders/investors
- • Analyzing profitability
- • Comparing with industry benchmarks
- • Financial statements & accounting
- • Setting prices from costs
- • Quoting jobs/projects
- • Day-to-day pricing decisions
- • Simple retail calculations
Industry Standard Margins
Sources et méthodologie
Margin = Markup / (1 + Markup); Markup = Margin / (1 - Margin)Conversion between margin and markup
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How to Use the Margin vs Markup Converter
The margin vs markup converter helps business owners, retailers, and pricing professionals instantly convert between these two commonly confused metrics. Enter either margin or markup, and see the equivalent value in the other format, along with clear visual explanations.
The Key Difference Explained
Margin is the percentage of the selling price that is profit. Markup is the percentage added to the cost to get the selling price. They measure the same profit differently:
- A 50% markup = 33.3% margin
- A 50% margin = 100% markup
- A 100% markup = 50% margin
The Formulas
Markup to Margin: Margin = Markup / (100 + Markup) × 100
Margin to Markup: Markup = Margin / (100 - Margin) × 100
For example, to convert 25% markup to margin: 25 / 125 × 100 = 20% margin.
A $100 Example
If an item costs $100 and you apply a 50% markup, the selling price is $150. Your gross profit is $50. But the margin is only 33.3% because $50 / $150 = 0.333. The same $50 profit, measured two different ways.
Common Conversions Reference
- 15% margin = 17.6% markup
- 20% margin = 25% markup
- 25% margin = 33.3% markup
- 30% margin = 42.9% markup
- 40% margin = 66.7% markup
- 50% margin = 100% markup
Which Should You Use?
Margin is more useful for analyzing profitability and comparing to industry benchmarks. Markup is more practical for setting prices day-to-day. Most financial statements report margins, while most retail pricing uses markup. Know both!
Related Calculators
Calculate specific margins with our margin calculator or markups with the markup calculator. Find your break-even point with the break-even calculator.
Questions fréquemment posées
They use different denominators. Margin divides profit by selling price (the larger number). Markup divides profit by cost (the smaller number). Same $50 profit: if price is $150 and cost is $100, margin is 33.3% but markup is 50%.
Margin = Markup / (100 + Markup) × 100. For example, 50% markup: 50 / 150 × 100 = 33.3% margin. Or use: Margin = Markup / (1 + Markup decimal).
Markup = Margin / (100 - Margin) × 100. For example, 25% margin: 25 / 75 × 100 = 33.3% markup. Or use: Markup = Margin / (1 - Margin decimal).
100% markup equals 50% margin. If you double the cost (100% markup), half the selling price is profit (50% margin). This is a key relationship to memorize.
Use margin for financial reporting, profitability analysis, and comparing to industry benchmarks. Use markup for day-to-day pricing since it is more intuitive to add a percentage to your cost. Know both!
20% margin = 25% markup. 25% margin = 33.3% markup. 30% margin = 42.9% markup. 40% margin = 66.7% markup. 50% margin = 100% markup. Keep a reference table handy for quick conversions.
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