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Calculate selling price from cost and markup percentage. Find the right price for your products.

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How to Calculate Markup

Markup is calculated as: Markup % = ((Price − Cost) / Cost) × 100. To find the selling price: Price = Cost × (1 + Markup%/100).

For example, with a kr525 cost and 40% markup: Price = kr525 × 1.40 = kr735.

Markup represents how much more than the cost you're charging, expressed as a percentage of the cost.

Common Markup Percentages by Industry

Grocery: 5-25%
Clothing: 100-300% (keystone to triple)
Electronics: 10-30%
Restaurants (food): 200-400%
Jewelry: 100-300%

The 'keystone markup' (100%) means doubling the cost — common in retail.

How to Set the Right Markup

Consider these factors when setting markup: industry standards, competition, perceived value, operating costs, and target profit margin.

Your markup must cover all expenses beyond the product cost (rent, labor, marketing) and still leave a profit.

Senast uppdaterad: March 2026

Frequently Asked Questions

What is keystone markup?

Keystone markup is 100%, meaning you double the cost to set the price. A kr525 item sells for kr1,050. It's a common starting point in retail.

How do I convert markup to margin?

Margin = Markup / (100 + Markup) × 100. A 50% markup = 50/150 × 100 = 33.3% margin.

Should I use markup or margin for pricing?

Both describe the same relationship differently. Markup is more intuitive for pricing decisions. Margin is better for analyzing profitability and comparing to competitors.