The difference in one line
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. Same profit, different base, so the margin percentage is always lower than the markup percentage.
Formulas
Markup % = profit ÷ cost × 100
Margin % = profit ÷ price × 100
Price from markup = cost × (1 + markup)
Price from margin = cost ÷ (1 − margin)
Worked example
An item costs you $10 and you sell it for $15. Profit is $5.
- Markup = $5 ÷ $10 = 50%
- Margin = $5 ÷ $15 = 33.3%
If you wanted a 50% margin but added a 50% markup, you’d have priced at $15 instead of $20, earning $5 per sale instead of $10.
Conversion table
| Markup | Margin |
|---|---|
| 10% | 9.1% |
| 20% | 16.7% |
| 25% | 20.0% |
| 33.3% | 25.0% |
| 50% | 33.3% |
| 75% | 42.9% |
| 100% | 50.0% |
| 150% | 60.0% |
| 200% | 66.7% |
| 300% | 75.0% |
Which one should you use?
Use whichever you like to set prices, but be consistent and know which one you mean. Margin is useful for checking profitability, because it tells you how much of every dollar of sales you keep. Remember to include all costs per sale (packaging, shipping you pay, platform and card fees), not just the product cost.
From our Etsy shop: Etsy Seller Profit & Expense Tracker. Google Sheets & Excel: log orders, Etsy fees and expenses, with a profit & loss dashboard and tax summary.
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Open the pricing calculatorFrequently asked questions
Is a 50% markup the same as a 50% margin?
No. A 50% markup is a 33.3% margin. A 50% margin needs a 100% markup.
Can margin be over 100%?
No. Margin is a share of the price, so it can only approach 100%. Markup can be any size.
What is a good profit margin?
It varies widely by industry and business model, so compare with businesses like yours and make sure your margin covers your overheads and your own pay.
Last reviewed: October 2026. General information only — check providers' official sites for current features and pricing.