Retail Markup Calculator
Calculate retail prices from wholesale cost. Perfect for store owners setting product prices.
Understanding Markup and Pricing
Retail standard: Keystone pricing = 100% markup (double the cost). Luxury can be 200-400%.
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
What is keystone pricing?
Doubling wholesale cost to set retail price. Buy at $20, sell at $40. Simple but effective.
How much markup for clothing?
Clothing typically 100-300% markup. Fast fashion lower, designer brands much higher.
Do I markup on MAP pricing?
MAP is minimum advertised price. You can price above MAP but not below. Factor into markup decisions.