Markup percentage tells you how much above your cost you are charging. It's the standard pricing method for retail, wholesale, and manufacturing.
Markup % = (Selling Price - Cost) / Cost × 100
Setting Price from a Target Markup
Selling Price = Cost × (1 + Markup % / 100)
Example: $40 cost with 150% markup → $40 × 2.5 = $100 selling price.
Common Markup Multiples by Industry
| Industry | Typical Markup |
|---|---|
| Grocery / food retail | 15–50% |
| Apparel | 100–200% |
| Furniture | 100–200% |
| Electronics | 10–50% |
| Software / SaaS | 200–500%+ |
| Restaurants | 200–400% on food |
| Professional services | 100–300% on labor cost |
Keystone Pricing
Keystone pricing is the practice of doubling the wholesale cost (100% markup = 50% margin). It was the standard retail rule of thumb before price transparency. Modern e-commerce and price comparison tools have compressed markups in many sectors.