OnSumo Tools

Wholesale Markup Calculator

This calculator works out wholesale price, retail price, and profit margin from any starting point in the pricing chain. Enter your unit cost to calculate wholesale and retail prices. Or start from the wholesale price and solve backward to cost and forward to retail. Or start from the retail price and solve for both wholesale and cost. The tool shows markup percentage and margin percentage at each tier, flags keystone pricing when you hit it, and displays the full pricing chain as a visual.

100% client-side. Your pricing inputs never leave this browser.

Build cost → wholesale → retail from any starting price. Markup and margin are both shown at each tier.

Solve from

Unit cost

$10.00

Wholesale

$20.00

Markup: 100.0%

Margin: 50.0%

Keystone pricing

Retail

$40.00

Markup: 100.0%

Margin: 50.0%

Keystone pricing

Unit cost

$10.00

Wholesale price

$20.00

Retail price

$40.00

Wholesale margin

50.0%

Keystone pricing (2x cost = wholesale, 2x wholesale = retail) is a common wholesale-retail chain rule of thumb.

Retail price breakdown

$0$40.00 retail
  • Unit cost$10.00
  • Wholesale profit$10.00
  • Retail profit$20.00

Manufacturing or landed cost per unit.

On cost. Keystone = 100% (2x cost).

On wholesale. Keystone = 100% (2x wholesale).

How this tool works

The wholesale markup calculator models a two-level pricing chain from manufacturer cost through wholesale price to retail price, displaying both markup and margin at each level. Markup percent expresses the price premium as a fraction of cost: Markup% = (Selling Price - Cost) / Cost x 100. Margin percent expresses profit as a fraction of revenue: Margin% = (Selling Price - Cost) / Selling Price x 100. Both are shown simultaneously because a 100% markup (doubling the cost) produces only a 50% margin -- the single most common pricing confusion in wholesale. Keystone pricing applies 100% markup at each chain level, so a product costing $10 to produce wholesales for $20 and retails for $40. A stacked bar visualization breaks each selling price into cost and profit layers at the manufacturer, wholesale, and retail levels. Key assumption: the calculator models single-unit pricing. Volume discount tiers and minimum order quantities, which are common in wholesale relationships, are not modeled. Edge case: MAP (Minimum Advertised Price) policies in some categories set a floor below which retailers cannot advertise the product. MAP constrains the retail layer but does not affect the wholesale calculation itself; the tool does not validate MAP compliance. If the computed retail price falls below a known MAP, you need to renegotiate the wholesale price or the cost structure.

Worked example

A manufacturer with a unit cost of $10, using keystone pricing at both tiers (100% markup at each step): wholesale price = $10 x 2 = $20. Retail price = $20 x 2 = $40. Wholesale margin = ($20 - $10) / $20 = 50%. Retail margin = ($40 - $20) / $40 = 50%. Solving from retail: a retailer pays $24 wholesale for a $40 retail product. Retail margin = ($40 - $24) / $40 = 40%. Cost estimate at 50% wholesale margin = $24 x 0.50 = $12.

Frequently asked questions

  • What is keystone markup?

    Doubling the price at each step in the chain. Manufacturer to wholesale: 2x cost (100% markup, 50% margin). Wholesale to retail: 2x wholesale (100% markup, 50% margin). So a $10 cost item retails at $40 through a full keystone chain. Keystone is the traditional standard for wholesale-to-retail pricing across most general merchandise categories.

  • What is the difference between markup and margin?

    Markup is calculated on cost and shows how much you add relative to what you paid. Margin is calculated on the selling price and shows what percentage of revenue is profit. A 100% markup (you doubled the price) equals a 50% margin (half the selling price is profit). A 50% markup equals a 33% margin.

  • What markup should I charge for wholesale?

    Most general merchandise categories use 50-100% markup on cost (33-50% margin) to arrive at wholesale price. Luxury goods may use 200-300% markup. Commodity products or private-label items often use lower markups. The right answer depends on the competitive landscape, the buyer's expected margin, and your cost structure.

  • Can I legally set the retail price for my product?

    You can suggest a retail price (called MSRP or suggested retail price) but in most markets you cannot legally enforce a minimum retail price in a price maintenance agreement with retailers. Retailers set their own prices based on their cost, competitive positioning, and margin targets.

  • What is the wholesale margin on direct-to-consumer channels?

    When you sell direct-to-consumer on Shopify or Amazon, you capture both the manufacturer margin and the retail margin. Your cost goes straight to a retail-equivalent price, eliminating the intermediate wholesale tier. Model this by entering cost and the DTC price directly in the Start from cost mode.

  • How do I account for freight and duty in the cost?

    Unit cost should include your landed cost: the cost to get the product to your warehouse, including manufacturing, freight, duty, and any quality inspection. Markup and margin calculated on landed cost rather than ex-factory cost will give you a more accurate picture of your true profitability at each tier.

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