How do you calculate wholesale price?

Wholesale price = unit cost × (1 + markup). With a $20 cost and a 50% markup the wholesale price is $30. If you target a gross margin instead, divide: $20 ÷ (1 − 0.40) = $33.33 gives a 40% margin.

What is the difference between markup and margin?

Markup is profit as a percentage of cost (profit ÷ cost). Margin is profit as a percentage of the selling price (profit ÷ price). Convert with margin = markup ÷ (1 + markup) and markup = margin ÷ (1 − margin): a 50% markup is a 33.3% margin, and a 100% markup is a 50% margin.

How do I get from wholesale to retail price?

Multiply the wholesale price by the retailer's multiplier, or divide by (1 − retailer margin). Keystone pricing doubles wholesale: a $30 wholesale item retails at $60, and the retailer keeps a 50% gross margin.

What is keystone markup?

Keystone is the retail convention of doubling the wholesale price, a 100% markup on wholesale or a 50% gross margin for the retailer. It is common in apparel, gifts and specialty retail; grocery and electronics usually run much lower margins.

MSRP is the manufacturer's suggested retail price, the price the brand recommends to end consumers. In the US it is a suggestion: retailers set their own prices. Many brands set MSRP equal to keystone; this tool defaults to 2.5× wholesale so you can see a higher anchor, and you can change it.

How do distributor margins fit in?

With a distributor the manufacturer sells to the distributor, which marks up and sells to the retailer. Each tier's price = its cost ÷ (1 − its margin). At 40% manufacturer, 25% distributor and 50% retailer margin, a $10 cost becomes $16.67, then $22.22 to the retailer, then $44.44 at retail.

What markup percentage should I use for wholesale?

It depends on category, volume and who carries freight and marketing costs. Work backward: start from the retail price the market accepts, remove the retailer's and any distributor's margin, and check that what is left covers your landed cost plus your own margin. The chain section does this calculation.

Wholesale Price Calculator

Wholesale price = cost × (1 + markup) or cost ÷ (1 − margin). Keystone retail is 2 × wholesale (a 50% retailer margin). Enter your cost and markup or margin to get wholesale, retail, MSRP and every tier of a distributor chain.

Pricing Inputs

Product Cost (per unit)

The total cost to produce or source one unit.

Price wholesale by

Wholesale Markup (%)

Profit as a percentage of your cost.

Retail Multiplier (keystone)

Retail price = wholesale × this multiplier (standard = 2.0).

MSRP Multiplier

MSRP = wholesale × this multiplier. Use 2.0 if your MSRP is keystone.

Enter a product cost and markup to see pricing.

Manufacturer → Distributor → Retailer Price Chain

Each tier sells at its own cost ÷ (1 − its gross margin). Set the distributor margin to 0 for direct-to-retail. Updates as you type.

Unit cost ($)

Manufacturer margin (%)

Distributor margin (%)

Retailer margin (%)

Target retail price ($)

Tier sells to	Buys at	Sells at	Profit	Markup

Markup vs Margin Conversion Table

Margin = markup ÷ (1 + markup); price multiplier = 1 + markup. A 100% markup (keystone) is a 50% margin.

Markup on cost	Gross margin	Price multiplier	$10 cost sells at
10%	9.1%	1.1×	$11.00
20%	16.7%	1.2×	$12.00
25%	20.0%	1.25×	$12.50
30%	23.1%	1.3×	$13.00
33.33%	25.0%	1.333×	$13.33
40%	28.6%	1.4×	$14.00
50%	33.3%	1.5×	$15.00
60%	37.5%	1.6×	$16.00
75%	42.9%	1.75×	$17.50
100%	50.0%	2×	$20.00
150%	60.0%	2.5×	$25.00
200%	66.7%	3×	$30.00
300%	75.0%	4×	$40.00

Summary

This calculator helps manufacturers, distributors and resellers set a wholesale price from the landed unit cost and a target markup or gross margin. It then derives the retail price (keystone 2× by default) and an MSRP, shows the retailer's margin at that price, and models a three-tier chain from manufacturer to distributor to retailer, including the highest unit cost that still reaches a target shelf price.

How it works

Enter your landed product cost per unit (materials, labor, freight in and duties).
Choose whether your number is a markup on cost or a gross margin on the selling price, and enter it.
Wholesale price = cost × (1 + markup ÷ 100), or cost ÷ (1 − margin ÷ 100) when you price by margin.
Retail price = wholesale × the retail multiplier; 2.0 is keystone, which gives the retailer a 50% gross margin.
MSRP = wholesale × the MSRP multiplier. Set it equal to the retail multiplier if your suggested price is the expected shelf price.
In the distribution chain, enter each tier's gross margin to see the price at every step, or enter a target retail price to find the highest unit cost that still works.

Use cases

Set a wholesale price sheet for retail buyers and distributors.
Evaluate whether your cost structure supports profitable wholesale deals.
Communicate suggested retail and MSRP to resellers.
Compare different markup scenarios before finalizing pricing.
Calculate how much profit you keep at various volume tiers.
Prepare pricing for trade shows and wholesale catalogs.

Frequently Asked Questions

Last updated: 2026-10-10 · Reviewed by Nham Vu