What is keystone pricing?

Keystone pricing means a 100% markup, or doubling the cost. A $50 item sells for $100. This simple rule-of-thumb was common in retail before competition pressured margins. It results in a 50% gross margin.

How do I calculate selling price from markup?

Selling Price = Cost × (1 + Markup%/100). For a $75 item with 60% markup: $75 × 1.60 = $120 selling price.

Why is my margin lower than my markup?

Margin is always lower because it is divided by the larger selling price, while markup is divided by the smaller cost. A 100% markup (doubling cost) only gives a 50% margin (half of price is profit).

What markup do restaurants use?

Restaurants typically markup food 200-400% and beverages 300-500%. A $3 food cost dish might sell for $12-15 (300-400% markup). Alcohol markups are higher because of lower labor to serve.

Should I use markup or margin for pricing?

Use markup for day-to-day pricing decisions since it is intuitive to add a percentage to cost. Use margin for financial analysis and comparing profitability. Most retailers think in markup but report in margin.

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Markup Calculator

Set prices with your target markup percentage

0 calculations

Last verified: February 2026Accuracy tested

Calculated in your browser — we never store your dataIndustry-standard financial formulas

What do you want to calculate?

Cost

Markup Percentage

Common markups:

Selling Price

$112.50

MARKUP

50.0%

Based on cost

MARGIN

33.3%

Based on price

Price Breakdown

Cost: ${amount}

Profit: ${amount}

$112.50

Selling Price

Formula Used

Price = Cost × (1 + Markup%/100) = $75.00 × 1.50 = $112.50

Markup ↔ Margin Conversion

Markup	Margin	Multiplier
25%	20%	×1.25
33.3%	25%	×1.33
50%	33.3%	×1.50
66.7%	40%	×1.67
100%	50%	×2.00
150%	60%	×2.50
200%	66.7%	×3.00

Common Industry Markups

Grocery

10-30%

Low margins, high volume

Clothing Retail

100-150%

Keystone pricing common

Jewelry

200-300%

High perceived value

Restaurant Food

200-400%

Covers prep & service

Sources & Methodology

Formula: Markup = (Price - Cost) / Cost × 100

Retail markup percentage

Source: Standard retail pricing formula

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calc.alsoTry:Margin Margin vs Markup Break-Even Percentage

How to Use the Markup Calculator

The markup calculator helps retailers, wholesalers, and service providers determine selling prices based on cost and desired markup percentage. Enter your cost and markup to instantly see the selling price, or work backwards from a selling price to find the markup percentage.

Understanding Markup

Markup is the percentage added to the cost of a product to determine its selling price. The formula is: Selling Price = Cost × (1 + Markup%/100). For example, a $100 item with a 50% markup sells for $150. To find markup percentage: Markup% = ((Selling Price - Cost) / Cost) × 100.

Markup vs. Margin: Know the Difference

Markup is based on cost, while margin is based on selling price. A 100% markup means you doubled the cost, resulting in a 50% margin. This distinction is critical for pricing decisions. Use our margin vs markup converter to translate between the two.

Common Markup Percentages by Industry

Retail clothing: 100-150% (keystone pricing = 100%)
Jewelry: 200-300%
Grocery: 10-30%
Restaurants: 200-400% on food, 300-500% on beverages
Furniture: 80-200%

Pricing Strategy Tips

Your markup must cover operating expenses and generate profit. Consider competitor pricing, perceived value, and your target market. For seasonal or perishable goods, factor in markdown risk. Use our break-even calculator to ensure your markup covers all costs.

Related Calculators

Calculate your actual profits with our margin calculator. For sales and promotions, use the discount calculator.

Frequently Asked Questions

Markup % = ((Selling Price - Cost) / Cost) × 100. If an item costs $80 and sells for $120, markup = ($120-$80)/$80 × 100 = 50%. You added 50% of the cost to set the price.