Convert wholesale cost to retail price using markup percentage. See the resulting margin, profit per unit, and compare markup vs. margin side by side.
The wholesale-to-retail markup is the percentage increase applied to your wholesale cost to determine the retail selling price. A 100% markup means doubling the wholesale price; a 50% markup means adding half. Understanding the difference between markup and margin is critical for pricing profitability.
This calculator converts any wholesale cost to a retail price based on your desired markup percentage, then shows the corresponding profit margin. It also accounts for platform fees so you can see your actual net profit and true margin after all costs.
Whether you're a reseller, dropshipper, or retailer sourcing products at wholesale, this tool helps you set prices that cover costs and generate your target profit. Whether you are a beginner or experienced professional, this free online tool provides instant, reliable results without manual computation. By automating the calculation, you save time and reduce the risk of costly errors in your planning and decision-making process.
Confusing markup and margin is one of the most common pricing mistakes. A 50% markup is only a 33% margin. This calculator makes the relationship clear and accounts for platform fees to show your real profit. Use it to ensure wholesale sourcing deals are actually profitable. Having a precise figure at your fingertips empowers better planning and more confident decisions.
Retail Price = Wholesale Cost × (1 + Markup%) Gross Profit = Retail Price − Wholesale Cost Platform Fees = Retail Price × Fee% Net Profit = Retail Price − Wholesale Cost − Fees Margin = Net Profit / Retail Price × 100
Result: Retail: $40.00 | Profit: $14.00 | Margin: 35%
Wholesale: $20. Markup 100%: $20 × 2 = $40 retail. Gross profit: $20. Platform fee: $40 × 15% = $6. Net profit: $40 − $20 − $6 = $14. Margin: $14 / $40 = 35%. Despite a 100% markup, the actual margin is only 35% after platform fees.
| Markup | Margin | |--------|--------| | 25% | 20% | | 50% | 33.3% | | 100% | 50% | | 150% | 60% | | 200% | 66.7% |
To convert: Margin = Markup / (1 + Markup). Markup = Margin / (1 − Margin).
Your markup must cover not just product cost but all per-unit expenses: platform fees (15–30%), shipping to customer ($3–10+), packaging ($0.50–3), advertising ($2–10+), returns (5–15% return rate), and customer service costs. A realistic all-in markup for e-commerce is often 150–250%.
The best wholesale deals combine low unit cost, large minimum order quantities, and exclusive distribution. Volume discounts of 10–30% are common when ordering 10× the minimum MOQ. Always request samples before committing to large orders to verify quality.
Markup is profit as a percentage of COST. Margin is profit as a percentage of SELLING PRICE. A 100% markup means you double the cost to get the price, resulting in a 50% margin. A 50% markup results in a 33.3% margin. Margin is always lower than markup for the same dollar profit.
Keystone markup is a 100% markup (doubling the wholesale cost). If you buy at $10 and sell at $20, that's keystone. It's a traditional retail benchmark but may be insufficient for e-commerce sellers due to platform fees, shipping costs, and advertising expenses.
To achieve a X% margin: Markup% = X / (1 − X). For 40% margin before fees: 0.40 / 0.60 = 66.7% markup. For 40% margin after 15% fees: you need to work backward from the net margin equation, typically requiring 120–150% markup.
Major wholesale sourcing platforms include Alibaba (manufacturers), Faire (curated wholesale marketplace), Tundra (no-fee wholesale), and direct manufacturer contacts at trade shows. For domestic wholesale, directories like ThomasNet and local trade associations are valuable resources.
E-commerce markups typically range from 50% (commodity products with high competition) to 300%+ (unique, proprietary, or branded products). Fashion and accessories often carry 200–300% markup. Electronics are lower at 30–70%. The right markup depends on competition, demand, and perceived value.
Not necessarily. Different channels have different fees, customer expectations, and competitive dynamics. Your website (no platform fees) can offer lower prices or better margins. Amazon and eBay pricing should account for their respective fee structures. Use channel-specific markups.