Formula
The retail markup is applied to the wholesale price, not to a factory cost:
Retail price = wholesale price × (1 + retail markup)
A 100% markup doubles the wholesale price. This example uses 80%.
Assumptions
- You start from the price paid to the wholesaler.
- Tax is not added.
Worked example
A $20.00 wholesale price and an 80% retail markup set a retail price of $36.00.
Input definitions
- Wholesale price
- What you paid for the unit.
- Retail markup
- The percent added to reach the shop price, from 0 to 1,000.
Limitations
This is a planning estimate, not accounting, tax, payroll, or advertising advice. The currency control changes the symbol only.
Questions
How is this different from the wholesale page?
The wholesale page marks up your own unit cost for a retailer. This page marks up the price a shop already paid.
Does 100% markup mean the price is the wholesale price?
No. A 100% markup doubles it. A 0% markup leaves the wholesale price unchanged.