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Set the right selling price from your cost and target markup percentage — handles keystone retail pricing, restaurant food markup, and wholesale benchmarks with auto margin conversion.
Financial
Generated on August 22, 2026
Set the right selling price from your cost and target markup percentage — handles keystone retail pricing, restaurant food markup, and wholesale benchmarks with auto margin conversion.
A markup calculator helps retailers, distributors, wholesalers, and manufacturers set selling prices based on their cost of goods and a target markup percentage. Unlike margin (which is based on the selling price), markup is calculated from cost — so a 50% markup on $100 cost yields a $150 selling price, not $200. Getting this distinction right is crucial when translating an industry benchmark (which may be quoted in either margin or markup) into the correct selling price.
Formula
Selling Price = Cost × (1 + Markup% ÷ 100). Profit = Cost × Markup%. Margin% = Markup% ÷ (100 + Markup%) × 100.You buy 100 pieces of lawn fabric wholesale from Faisalabad at PKR 800 each, and now you have to set the retail price for your Instagram boutique or your Daraz storefront. You hear other sellers talking about "keystone pricing" (double the wholesale cost), "40 percent markup", and "target a 35 percent margin" — three different ways of saying things that produce three different selling prices, and you have no idea which one will keep your business alive. Markup is the cost-centric view: a 40 percent markup means selling for PKR 800 × 1.4 = PKR 1,120. The resulting margin (revenue-centric) is only 28.6 percent, because the PKR 320 profit is a smaller fraction of the larger PKR 1,120 selling price. This single confusion — treating markup and margin as the same number — is how Pakistani small businesses systematically underprice and fail to cover their actual overhead. Industry benchmarks: apparel retail 50-100 percent markup, restaurants 200-300 percent on food, electronics 15-30 percent because of price-comparison competition, jewelry 100+ percent on costume pieces. Don't apply uniform markup across categories — best-sellers can run thinner (volume covers it), slow-movers and specialty items need fatter markups. Honest take: the most expensive pricing mistake new Pakistani retailers make is setting a flat markup percentage without segmenting their SKUs. Tier your prices, monitor each category's actual contribution to profit, and adjust quarterly.
A markup calculator helps retailers, distributors, wholesalers, and manufacturers set selling prices based on their cost of goods and a target markup percentage. Unlike margin (which is based on the selling price), markup is calculated from cost — so a 50% markup on $100 cost yields a $150 selling price, not $200. Getting this distinction right is crucial when translating an industry benchmark (which may be quoted in either margin or markup) into the correct selling price. The tool also converts markup to equivalent margin automatically, because the two are commonly confused but are not the same number.
Markup is applied on top of the cost. The last formula converts markup to the equivalent margin — important because the two are often confused. A 50% markup always produces a 33.33% margin.
Quick table showing what selling price results from applying standard markup percentages to common cost amounts.
| Cost | 20% Markup | 40% Markup | 50% Markup | 100% Markup | 200% Markup |
|---|---|---|---|---|---|
| 100 | 120 | 140 | 150 | 200 | 300 |
| 250 | 300 | 350 | 375 | 500 | 750 |
| 500 | 600 | 700 | 750 | 1,000 | 1,500 |
| 1000 | 1,200 | 1,400 | 1,500 | 2,000 | 3,000 |
| 2500 | 3,000 | 3,500 | 3,750 | 5,000 | 7,500 |
| 5000 | 6,000 | 7,000 | 7,500 | 10,000 | 15,000 |
| 10000 | 12,000 | 14,000 | 15,000 | 20,000 | 30,000 |
Retail 'keystone' pricing = 100% markup — doubling the wholesale cost.
Restaurants typically use 200–300% food markup — $5 food cost → $15–20 menu price.
Wholesalers usually operate on 15–30% markup — thinner margins, higher volume.
The cumulative markup from factory to consumer often reaches 300–500%.
Cost $50 with 40% markup → sell for $70 (profit $20, margin 28.57%).
Cost PKR 1,000 with 25% markup → sell for PKR 1,250 (profit PKR 250, margin 20%).
Boutique clothing — cost $30, keystone markup 100% → sell for $60.
Restaurant food cost $5, with 300% markup → menu price $20 (food cost 25%).
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