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The wholesale price is what you charge retailers; they add their own markup to set the retail price. Price from your cost: a markup is a percentage added on top of cost, while a margin is the share of the selling price that is profit. A 50% markup is only a 33% margin.
Many retailers use keystone pricing — doubling the wholesale price (100% markup) — so a common rule for makers is: retail ≈ 2 × wholesale, and wholesale ≈ 2 × cost.
| Cost to make or buy one unit | 200 |
| Set wholesale price by | Markup on cost (%) |
| Your markup or margin (%) | 50 |
| Retailer markup on wholesale (%) | 100 |
| Wholesale price per unit | 300 |
| Your profit per unit | 100 |
| Your margin | 33.33% |
| Your markup | 50% |
| Suggested retail price (MSRP) | 600 |
| Retailer profit per unit | 300 |
Wholesale 300, retail 600.
Try this example →| Cost to make or buy one unit | 200 |
| Set wholesale price by | Profit margin on price (%) |
| Your markup or margin (%) | 50 |
| Retailer markup on wholesale (%) | 100 |
| Wholesale price per unit | 400 |
| Your profit per unit | 200 |
| Your margin | 50% |
| Your markup | 100% |
| Suggested retail price (MSRP) | 800 |
| Retailer profit per unit | 400 |
Wholesale 400 (= 100% markup).
Try this example →Add your markup to the cost: cost × (1 + markup). A ₹200 item with a 50% markup wholesales at ₹300. Or divide by (1 − margin) for a target margin.
Retailers doubling the wholesale price to set the retail price — a 100% markup, or 50% margin.
Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. The same ₹100 profit on a ₹200 cost is 50% markup but 33% margin.