Product Pricing Calculator
Set profitable product prices. Calculate markup, margin, and profit for any product or service.
Understanding Markup and Pricing
Pricing strategy: Cost-plus pricing adds fixed markup. Value-based pricing considers customer perception.
Markup vs Margin: The Key Difference
Markup is the percentage added to your cost to determine selling price. Margin is profit as a percentage of selling price. They look at the same profit from different angles.
- 50% Markup: Cost $100 → Price $150 (Margin = 33.3%)
- 100% Markup: Cost $100 → Price $200 (Margin = 50%)
- 200% Markup: Cost $100 → Price $300 (Margin = 66.7%)
Industry Standard Markups
- Grocery: 10-30% (high volume, low margin)
- Clothing: 100-300% (keystone and above)
- Electronics: 20-50% (competitive market)
- Jewelry: 100-500% (luxury perception)
- Restaurants: 200-400% on food items
Pricing Formulas
Selling Price = Cost × (1 + Markup%)
Markup% = (Selling Price - Cost) / Cost × 100
Margin% = (Selling Price - Cost) / Selling Price × 100
Frequently Asked Questions
How do I price my products?
Start with cost, add markup for profit, compare to competitors, adjust for value perception.
What if competitors price lower?
Either reduce costs, accept lower margins, or differentiate on quality/service to justify premium.
Should I use keystone pricing?
Keystone (100% markup) works for retail but may not fit all industries. Test and adjust.