Retail Markup Calculator
Calculate retail merchandise markup percentage from wholesale invoice cost to retail price tag, keystone pricing, and corresponding profit margins.
Retail Markup Equation
Markup % = ((Selling Price - Wholesale Cost) / Wholesale Cost) × 100; Profit Margin % = ((Selling Price - Wholesale Cost) / Selling Price) × 100- Markup Basis: Dollar profit expressed as a percentage of the wholesale purchase cost.
- Margin Basis: Dollar profit expressed as a percentage of retail selling price.
- Keystone Standard: Traditional US retail standard where selling price is exactly 2× wholesale cost (100% markup, 50% margin).
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Excludes customer sales taxes collected on behalf of state tax agencies.
Frequently Asked Questions
What is the difference between markup and margin?
Markup is based on cost, while margin is based on revenue. If you buy an item for $50 and sell it for $100, your dollar profit is $50. Your markup is 100% ($50/$50), but your gross profit margin is 50% ($50/$100).
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