Margin vs Markup, and Why the Difference Costs Money
A 50% markup is a 33% margin. Getting the two confused underprices products by a third, and the error…
Turns unit cost into a wholesale price at your target margin, then a retail price, showing what margin the shop stocking you is left with.
The Wholesale Price Calculator turns unit cost into a wholesale price at your target margin, then a retail price, showing what margin the shop stocking you is left with. It runs as plain JavaScript inside the page, which means there is no upload step, no queue and no size limit imposed by a server — the only limit is your own device.
| Keystone | Retail is twice wholesale — a 50% retailer margin |
|---|---|
| Retailer floor | Most shops want at least 50% |
| Boutiques | Often want 55–65% |
| Margin | Profit ÷ selling price |
| Markup | Profit ÷ cost — a different number |
This tool uses wholesale price = unit cost ÷ (1 − margin ÷ 100). Dividing by the margin itself is the classic error: 10 ÷ 0.5 = 20 gives a true 50% margin, while 10 × 1.5 = 15 gives only 33%. Every intermediate value is shown on screen, so the result can be checked by hand.
It prices one product in isolation. Volume breaks, distributor tiers that need a third margin, payment terms, returns and freight on a wholesale order are all real costs of trading that sit outside this calculation.
A 50% markup is a 33% margin. Getting the two confused underprices products by a third, and the error…
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