Why isn’t margin equal to markup?
Markup is based on cost; margin is based on price. A 50% markup delivers a 33.3% margin (because price = cost × 1.5).
Step-by-step walkthrough
Markup ↔ Margin Guide
Use this companion guide beside the interactive calculator to make sure you understand the “why” behind every click. Each section includes the classroom explanation, student-friendly language, and quick practice prompts.
Before you start
Collect the data points listed below and double-check their units. Keeping an organized “givens” list is one of the fastest ways to reduce math errors and impress exam graders.
- markup
- margin
- pricing
Detailed procedure
Step 1
Choose whether you know markup or margin.
Step 2
Enter the percentage.
Step 3
Copy the converted value for your price sheets or quoting tool.
Teaching & troubleshooting tips
Can I enter decimals?
Yes—0.375 is treated as 37.5%. Use whichever format you prefer.