You enter the cost of goods and your desired markup percentage. The tool multiplies cost by the markup rate to get profit dollars, adds that to cost for the selling price, and then computes the equivalent gross margin (profit as a share of selling price). It handles a single item — multiply by quantity for batch totals.
Keystone pricing means doubling the wholesale cost to set the retail price — a 100% markup, which equals a 50% gross margin. It's a traditional retail rule of thumb, especially in clothing, accessories, and specialty goods. Many retailers use it as a starting point and adjust based on competition and demand.
Markup is profit as a percentage of cost; margin is profit as a percentage of revenue (selling price). For the same transaction, markup is always a higher number than margin. For example, a $10 cost sold at $15 has a 50% markup but a 33.3% margin.
No. This calculates gross markup and margin only, based on cost of goods sold. Rent, labor, marketing, shipping, and other overhead are not factored in. To ensure profitability, your markup needs to cover all expenses beyond COGS.
It depends on your industry, competition, and cost structure. Grocery stores often mark up 25-50%, restaurants 200-300% on food, and software companies may have very high markups due to low marginal cost. Research your industry's typical margins and work backward to find the right markup.
Estimate only. Results reflect your inputs and standard formulas. Double-check important decisions independently.