Divide the margin by one minus the margin. A 20% margin is 0.2 divided by 0.8, which is a 25% markup. To go the other way, divide the markup by one plus the markup.
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Written out: markup = margin ÷ (1 − margin), and margin = markup ÷ (1 + markup). Use them as decimals, so 20% is 0.2.
The converter below does it both ways. These figures come from it.
| Margin you keep | Markup to add | On a £10,000 subcontract, charge the client |
|---|---|---|
| 10% | 11.1% | £11,111.12 |
| 20% | 25% | £12,500 |
| 30% | 42.9% | £14,285.72 |
| 40% | 66.7% | £16,666.67 |
| 50% | 100% | £20,000 |
Type in either box and the other one changes.
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