Wholesale to Retail Markup Calculator
Turn a wholesale cost into a retail price with your markup — retail price, profit per unit and the resulting margin, keystone included.
How it works
Retail price = wholesale cost × (1 + markup%) · Margin % = (retail − wholesale) ÷ retail × 100
Retailers usually price from wholesale cost by applying a markup — a percentage of cost added on top. "Keystone" pricing, a 100% markup that doubles the cost, is the traditional baseline and works out to a 50% margin. Because markup is measured against cost and margin against the retail price, the resulting margin is always smaller than the markup you applied.
Worked example
A product bought wholesale at $25 with a 100% keystone markup retails at $25 × 2 = $50, a $25 profit. Measured against the $50 retail price that is a 50% margin — the same dollars, a different base than the 100% markup.
Frequently asked questions
What is keystone pricing?
Keystone is a 100% markup — simply doubling the wholesale cost to set the retail price. It is a common retail default that yields a 50% margin, leaving room for discounts while still covering overhead.
How do markup and margin relate here?
Markup is the percentage added to cost; margin is profit as a share of the retail price. Margin = markup ÷ (1 + markup), so a 100% markup is a 50% margin and a 50% markup is a 33.3% margin.
Should every product use the same markup?
Not necessarily. Slow-moving or specialty items often carry higher markups, while fast-turning staples and price-sensitive goods may carry less. Match the markup to demand, competition and your target margin.
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Educational estimate, not financial advice.