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Product Markup Calculator
Calculate selling price, gross margin, and multiplier from product cost and desired markup percentage. Includes keystone pricing (100% markup / 2x multiplier) comparison and markup-to-margin conversion.
Pricing Inputs
Product Cost ($)
Desired Markup (%)
Formula Reference: Selling Price = Cost x (1 + Markup%/100). Markup is based on cost, Margin is based on selling price. Keystone = 100% markup (2x cost).
Markup Results
Product Cost$25.00
Markup Percentage50%
Multiplier1.50x
Selling Price$37.50
Profit per Unit$12.50
Gross Margin %33.3%
Keystone (100% Markup)$50.00
Keystone Profit$25.00
Keystone Margin50.0%
Keystone Multiplier2.0x
Diff from Keystone$-12.50
Pricing Insight: At 50% markup, the multiplier is 1.50x. Every $1 of cost becomes $1.50 in selling price. The margin is 33.3%. Keystone pricing (100% markup) would give 50.0% margin.
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Authoritative References
Frequently Asked Questions
What is the difference between markup and margin?
Markup is the percentage added to cost to determine selling price: Markup % = (Selling Price - Cost) / Cost x 100. Margin (gross margin) is the percentage of revenue that is profit: Margin % = (Selling Price - Cost) / Selling Price x 100. A 50% markup equals a 33.3% margin. A 100% markup (keystone) equals a 50% margin. Markup is based on cost, margin is based on selling price. They are NOT interchangeable and using the wrong one can lead to incorrect pricing.
What is keystone pricing and when should I use it?
Keystone pricing means setting the selling price at exactly double the cost (100% markup, 50% margin). It is a traditional retail standard that simplifies pricing. Use keystone pricing when: you are a new business without pricing data, you sell physical products with typical retail markup expectations, or you compete in traditional retail channels. However, many modern ecommerce businesses use variable markups based on competition, perceived value, and category norms.
How do I determine the right markup percentage for my products?
The right markup depends on your industry, competition, and business model: Consumer electronics 20-30% markup (17-23% margin), Apparel 50-100% markup (33-50% margin), Home goods 40-60% markup (29-38% margin), Books 30-40% markup (23-29% margin), Luxury goods 100-300% markup (50-75% margin), and Commodity products 15-25% markup (13-20% margin). Factor in your operating costs and desired net profit margin when setting markups.
How do I calculate markup from cost and desired margin?
If you know your cost and your desired margin percentage, use: Markup % = Desired Margin % / (1 - Desired Margin %) x 100. For example, if you want a 40% margin on a product costing $30: Markup % = 0.40 / (1 - 0.40) x 100 = 66.67%. Selling price = $30 x (1 + 0.6667) = $50.00. Check: ($50 - $30) / $50 = 40% margin. This formula is essential for translating target margins into actual selling prices.
What is multiplier pricing and how does it relate to markup?
Multiplier pricing is another way to express markup. If the multiplier is 2.0 (keystone), that means 100% markup (2x cost). A multiplier of 1.5 means 50% markup. Multiplier = 1 + (Markup % / 100). To find the selling price: Price = Cost x Multiplier. Many retailers use multipliers instead of percentages because they are easier to apply across large inventories. Typical multipliers range from 1.3 (30% markup) to 3.0 (200% markup) for luxury goods.