Markup Calculator
Markup and margin are not the same thing. Convert between them, and find the right markup for your product.
Markup vs Margin — never confuse them
A 200% markup is NOT a 200% margin. A 200% markup on a $12 cost = $36 selling price = 66.7% margin. Always use margin, not markup, when calculating break-even ROAS.
Markup vs. Margin: The Difference That Costs Dropshippers Money
Markup and margin are the two most-confused concepts in ecommerce finance, and the confusion costs real money. A dropshipper who thinks a "3× markup" means a "75% margin" will miscalculate break-even ROAS by 50%, scale losing ad campaigns, and not understand why they are bleeding cash. This page exists to make sure that never happens to you.
The Definitions
Markup is profit expressed as a percentage of cost. Markup = (Price − Cost) ÷ Cost × 100.
Margin is profit expressed as a percentage of price. Margin = (Price − Cost) ÷ Price × 100.
Same numbers, different denominators. The denominator matters because ad platforms, payment processors, and most ecommerce metrics are expressed as a percentage of revenue (price), not cost.
Conversion Table
| Markup | Multiplier | Margin | Break-Even ROAS |
|---|---|---|---|
| 50% | 1.5× | 33.3% | 3.00× |
| 100% | 2.0× | 50.0% | 2.00× |
| 150% | 2.5× | 60.0% | 1.67× |
| 200% | 3.0× | 66.7% | 1.50× |
| 300% | 4.0× | 75.0% | 1.33× |
| 400% | 5.0× | 80.0% | 1.25× |
| 900% | 10.0× | 90.0% | 1.11× |
Notice: as markup grows, margin approaches 100% but never reaches it. And as margin grows, break-even ROAS approaches 1.0× — meaning at very high margins, even modest ad performance is profitable.
The Formula to Convert Markup to Margin
Margin % = Markup % ÷ (100 + Markup %) × 100
Example: 200% markup → 200 ÷ 300 × 100 = 66.7% margin.
The Formula to Convert Margin to Markup
Markup % = Margin % ÷ (100 − Margin %) × 100
Example: 50% margin → 50 ÷ 50 × 100 = 100% markup.
Why Margin Is the Number You Should Track
Every external metric in ecommerce — payment processor fees, ad cost as % of revenue, ROAS, AOV — is expressed against revenue, which is price. Margin is also against price. So when you compute break-even ROAS = 1 ÷ Margin, the math just works. If you tried to use markup, you'd get the wrong answer and not notice.