30% Markup to Margin: a 30% markup is a 23.1% margin
Cost times 1.3 is a 30% markup, and on that price the gross margin works out to 23.1%. Use the calculator below to check any cost, or read the table for the usual price points.
Check any cost at 30% markup
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The formula
30 ÷ 130 × 100 = 23.1%
Markup and margin use different bases. Markup divides profit by cost, margin divides the same profit by price, and because price is always larger than cost the margin percentage is always the smaller number. At 30% markup, $17.40 of profit on a $58.00 cost is 30% of cost but only 23.1% of the $75.40 price.
Price table at 30% markup
Every row adds 30% to the cost. The margin column is the same on every line, 23.1%, because margin depends only on the percentage, not on the amount.
| Cost | Price at 30% markup | Gross profit | Margin |
|---|---|---|---|
| $5.00 | $6.50 | $1.50 | 23.1% |
| $10.00 | $13.00 | $3.00 | 23.1% |
| $25.00 | $32.50 | $7.50 | 23.1% |
| $50.00 | $65.00 | $15.00 | 23.1% |
| $100.00 | $130.00 | $30.00 | 23.1% |
| $250.00 | $325.00 | $75.00 | 23.1% |
| $500.00 | $650.00 | $150.00 | 23.1% |
| $1,000.00 | $1,300.00 | $300.00 | 23.1% |
| $2,500.00 | $3,250.00 | $750.00 | 23.1% |
| $10,000.00 | $13,000.00 | $3,000.00 | 23.1% |
Markups near 30%
From 20% to 40% markup the margin moves from 16.7% to 28.6%: 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
Worked example. A product costs $58.00. Add 30%: $58.00 × 1.3 = $75.40. The gross profit is $75.40 − $58.00 = $17.40. As a share of cost that is 30% (the markup); as a share of price it is $17.40 ÷ $75.40 = 23.1% (the margin).
Why the two percentages differ
Retail buyers, marketplaces and investors quote margin, not markup. Tell them your product carries 30% and they will assume 30% of the price is profit; the truth at 30% markup is 23.1%, which changes how much discounting the line can absorb before it loses money.
When to use markup, when to use margin
A 30% markup is typical for categories where the seller adds little beyond stocking and handling: it leaves 23.1% of each sale to cover overheads. Categories with high service content usually need a higher markup to reach a margin that pays for the time involved.
If what you actually want is a 30% margin, the markup has to be 42.9%, not 30%. On a $58.00 cost that means a price of $82.86 instead of $75.40.
See the mirror page: what markup gives a 30% margin.