Find your selling price, cost, or markup percentage — with price ladders, supply chain tiers, and break-even analysis.
Input
Industry preset
$
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$
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$
$
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Result
Selling Price
$20.00
50.00% gross margin
●Within typical range for retail
Gross Margin
50.00%
Markup %
100.00%
Profit / Unit
$10.00
Total Revenue
$20.00
Total Profit
$10.00
Net (After Tax)
$10.00
Price = $10.00 × (1 + 100%) = $20.00
Your $10.00 product priced at $20.00 achieves a 100% markup (50% gross margin) — classic keystone pricing. With 1 unit, you generate $20.00 revenue and $10.00 profit.
Wholesale: $21. Retail: $42. Total chain markup: 180%. Consumer pays 2.8× manufacturing cost.
Markup vs Equivalent Margin
Markup %
Cost $50 → Price
Profit
Equivalent Margin
25%
$62.50
$12.50
20.0%
50%
$75.00
$25.00
33.3%
100% (Keystone)
$100.00
$50.00
50.0%
150%
$125.00
$75.00
60.0%
200%
$150.00
$100.00
66.7%
Mastering Markup Pricing
Markup in the Supply Chain
Products pass through multiple markups before reaching the consumer. A manufacturer adds 20-40% markup to raw material costs, the wholesaler adds 15-30% to the manufacturer's price, and the retailer adds 50-100% (keystone) to the wholesale price. A $10 raw material item can easily retail for $30-$50 after three tiers of markup. Understanding the full chain helps you find where margins are thickest and where to negotiate.
Common Markup Mistakes
The most dangerous mistake is confusing markup and margin. Telling your team to use a 30% markup when you meant a 30% margin results in underpricing: 30% markup on a $100 cost gives a $130 price (23% margin), not the $143 price needed for a 30% margin. Another common error is applying uniform markups across product lines when some products have higher handling, storage, or return costs and should carry higher markups to maintain consistent margins.