What is the difference between markup and margin?

Markup is profit as a percentage of your cost; margin is profit as a percentage of the selling price. On a ₹10,000 cost sold at ₹12,000, the ₹2,000 profit is a 20% markup but a 16.7% margin.

How do I convert markup to margin?

Margin = markup ÷ (1 + markup). A 25% markup is 0.25 ÷ 1.25 = 20% margin.

How do I convert margin to markup?

Markup = margin ÷ (1 − margin). A 20% margin is 0.20 ÷ 0.80 = 25% markup.

What markup do travel agents use?

It varies by product, market, and competition. Tailor-made trips and complex itineraries usually carry more markup than simple hotel-only bookings. Work out the profit you need per booking, then check the resulting price against what travellers will compare it with.

Tools

Travel markup & margin calculator

Enter your net cost, then a markup or the margin you want. The calculator does the rest.

By the Tripdocks team · Last updated September 28, 2026

Markup is profit as a share of your cost; margin is profit as a share of the selling price. Mixing them up is one of the most common pricing mistakes in travel — a 20% markup is only a 16.7% margin.

The formulas

You know	Formula
Cost and markup	Price = cost × (1 + markup)
Cost and target margin	Price = cost ÷ (1 − margin)
Markup → margin	Margin = markup ÷ (1 + markup)
Margin → markup	Markup = margin ÷ (1 − margin)

Common conversions

Markup	Margin
10%	9.1%
15%	13.0%
20%	16.7%
25%	20.0%
33.3%	25.0%
50%	33.3%

Taxes such as GST or VAT, payment fees, and commissions come on top of or out of these numbers depending on how you invoice — check the treatment with your accountant. In Tripdocks you set the markup directly on each quote in the quote builder. See also the quotation template.

Frequently asked questions

What is the difference between markup and margin?: Markup is profit as a percentage of your cost; margin is profit as a percentage of the selling price. On a ₹10,000 cost sold at ₹12,000, the ₹2,000 profit is a 20% markup but a 16.7% margin.
How do I convert markup to margin?: Margin = markup ÷ (1 + markup). A 25% markup is 0.25 ÷ 1.25 = 20% margin.
How do I convert margin to markup?: Markup = margin ÷ (1 − margin). A 20% margin is 0.20 ÷ 0.80 = 25% markup.
What markup do travel agents use?: It varies by product, market, and competition. Tailor-made trips and complex itineraries usually carry more markup than simple hotel-only bookings. Work out the profit you need per booking, then check the resulting price against what travellers will compare it with.