170% Markup to Margin: a 170% markup is a 63% margin
A 170% markup on cost is a 63% gross margin on the selling price. The two numbers describe the same sale from different ends: markup looks up from what you paid, margin looks down from what you charged.
Check any cost at 170% markup
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The formula
170 ÷ 270 × 100 = 63%
The reason 170% turns into 63% is the denominator. Profit stays the same, $338.30 on a $199.00 item, but markup measures it against the $199.00 you paid while margin measures it against the $537.30 the customer paid. A bigger denominator makes a smaller percentage.
Price table at 170% markup
Every row adds 170% to the cost. The margin column is the same on every line, 63%, because margin depends only on the percentage, not on the amount.
| Cost | Price at 170% markup | Gross profit | Margin |
|---|---|---|---|
| $5.00 | $13.50 | $8.50 | 63% |
| $10.00 | $27.00 | $17.00 | 63% |
| $25.00 | $67.50 | $42.50 | 63% |
| $50.00 | $135.00 | $85.00 | 63% |
| $100.00 | $270.00 | $170.00 | 63% |
| $250.00 | $675.00 | $425.00 | 63% |
| $500.00 | $1,350.00 | $850.00 | 63% |
| $1,000.00 | $2,700.00 | $1,700.00 | 63% |
| $2,500.00 | $6,750.00 | $4,250.00 | 63% |
| $10,000.00 | $27,000.00 | $17,000.00 | 63% |
Markups near 170%
From 160% to 180% markup the margin moves from 61.5% to 64.3%: each two-point step in markup is worth less than two points of margin at this level, and the gap widens as the markup grows. The multiplier column is what you type into a spreadsheet to price a cost list.
Worked example
Take a $199.00 item. At 170% markup the ticket price is $537.30, which leaves $338.30 after paying for the item. That $338.30 is 170% of what you paid but 63% of what you charged, and only the second number tells you how much of the sale is yours to spend on overheads.
Why the two percentages differ
Retail buyers, marketplaces and investors quote margin, not markup. Tell them your product carries 170% and they will assume 170% of the price is profit; the truth at 170% markup is 63%, which changes how much discounting the line can absorb before it loses money.
When to use markup, when to use margin
Two moments call for 170% markup specifically: converting a supplier's cost price list into a retail list in one pass, and checking a competitor's likely cost when you know their price and the category's usual uplift. For everything that ends up in accounts, translate to the 63% margin.