Markup Calculator
Calculate selling price based on cost and markup.
Why Use Markup?
Markup is the most common way for retailers to forecast profit and set prices. It allows you to ensure every sale covers the cost of goods plus a percentage for overhead and profit.
Pricing Formulas
To set a price based on markup:
Selling Price = Cost × (1 + Markup%)
Example: Cost $50, Markup 25% → $50 × 1.25 = $62.50.
Keystone Pricing
"Keystone pricing" is a retail standard where the markup is exactly 100% (doubling the cost). If you buy a shirt for $20 and sell it for $40, you are using keystone pricing. This results in a 50% profit margin.