How to price wholesale and retail
When you buy goods wholesale you need a retail price that earns your target profit while staying acceptable to the customer. This guide explains the retail formula from wholesale cost and per-unit markup, and gives a worked example matching Klar’s wholesale to retail calculator.
The formula: wholesale cost × (1 + markup)
Retail price = wholesale cost × (1 + markup percentage ÷ 100), and profit per unit = retail price − cost. The percentage is based on cost (markup), not on selling price (margin). A 100% markup on a cost of 15 means a price of 30, not a 100% margin.
A worked example
Using the calculator’s values: wholesale cost 15, markup 60%. Retail price = 15 × 1.6 = 24, and profit per unit = 24 − 15 = 9.
Per unit, not per batch
The inputs are per single unit. If you bought a box of 10 units and sell each at a price derived from its own cost, enter the cost of one unit, not the box.
Choosing the markup
Pick a percentage that covers your operating costs (shipping, storage, marketing) and your profit, while considering competitor prices. Do not forget to add VAT on the final price shown to the customer.
Key takeaways
- Retail price = wholesale cost × (1 + markup percentage ÷ 100).
- Markup is a percentage of cost, not of selling price.
- The inputs are per single unit, not for the whole batch.
- The resulting price is pre-tax; add tax when pricing.
Frequently asked questions
How do I choose the markup?
Add enough margin to cover your operating costs and earn profit, while comparing competitor prices and the value you offer. There is no single right percentage.
Does the price include VAT?
No. The calculator gives the pre-tax price; add the tax applied in your country.
Related calculators
Wholesale to retail calculator
Set a retail price from wholesale cost and a markup percentage, with the per-unit profit.
Markup & margin calculator
Compute profit, markup percentage and margin percentage from cost and selling price.
Break-even calculator
Find how many units you must sell to cover fixed and variable costs and reach break-even.