Retail margin calculator
Calculate margin and markup for retail pricing. Includes keystone pricing reference and industry benchmarks for apparel, grocery, and electronics.
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Retail margin calculator benchmarks
Retail margin varies wildly by category. Grocery runs on thin 2-5% net margins compensated by volume. Apparel and accessories aim for 50-60% gross. Specialty boutiques and luxury can hit 70%+. The arithmetic is the same; the targets are not.
Keystone pricing
The classic retail rule of thumb: double the wholesale cost. A $20 wholesale item becomes $40 at retail. This is a 100% markup, which equals a 50% margin. Keystone is still the default in independent retail because it's simple and roughly covers the costs of running a store (rent, staff, overhead) while leaving a respectable profit.
Industry benchmark margins
| Category | Gross margin | Typical markup |
|---|---|---|
| Apparel | 50-60% | 100-150% |
| Accessories / jewelry | 60-70% | 150-233% |
| Furniture | 40-50% | 67-100% |
| Electronics | 10-20% | 11-25% |
| Grocery | 20-30% | 25-43% |
| Books | 30-40% | 43-67% |
| Beauty / cosmetics | 55-70% | 122-233% |
Frequently asked
What is keystone pricing?
Doubling the wholesale cost to set the retail price. A 100% markup, which equals a 50% margin. The traditional default in independent retail.
Why is electronics margin so low?
Electronics are commodities with transparent online pricing. Customers comparison-shop, big-box stores and Amazon set the ceiling, and product cycles are short. Most electronics retailers make their money on accessories, warranties, and installation.
Should I use the same markup for every product?
No. Higher-velocity items can carry lower markups; slow movers and specialty items need higher. Loss-leaders are sometimes priced below cost to drive traffic.
Compare across industries
See worked examples from retail, restaurant, construction, SaaS, and more.
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