Side Hustle

Wholesale vs Retail Pricing Calculator

Calculate your ideal retail and wholesale prices from cost of goods — with keystone formula, markup vs margin breakdown, and minimum viable price.

Cost of Goods (COGS) ($) Your total cost to produce or source one unit

Overhead per Unit ($) Packaging, storage, admin allocated per unit

Desired Retail Margin (%) What % of retail price is profit (not markup)

Desired Wholesale Margin (%) What % of wholesale price is profit

Target Retail Price ($) — optional Enter a price to back-calculate your margins

Calculated Retail Price

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Wholesale Price (Keystone)

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Retail Markup %

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Actual Retail Margin %

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Minimum Viable Price

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Negotiation Room

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Markup vs Margin — Understanding the Difference

Markup and margin are often confused, but they measure very different things. Getting this wrong leads to underpricing that looks profitable on paper but isn't in practice.

Markup: Profit as a % of COST. A 100% markup on a $10 item = $20 price = $10 profit.
Margin: Profit as a % of REVENUE. A 50% margin on a $20 item = $10 profit.
Keystone Pricing: Traditional retail formula — wholesale = 50% of retail. Retail = 2× wholesale.

Retail Price = (COGS + Overhead) ÷ (1 − Desired Margin)
Wholesale Price = Retail Price × 0.50 (Keystone) — or — (COGS + Overhead) ÷ (1 − WS Margin)
Markup % = (Price − Cost) ÷ Cost × 100
Margin % = (Price − Cost) ÷ Price × 100

What's the difference between markup and margin?

Markup is calculated on cost; margin is calculated on revenue. A 50% markup on a $10 item gives you a $15 price and a 33% margin — not 50%. This confusion causes sellers to underprice. If someone asks for a "50% margin," they mean 50% of the selling price is profit. To achieve a 50% margin on a $10 cost item, you price it at $20 (a 100% markup). Always clarify which metric you're using when discussing pricing with buyers or manufacturers.

What is the keystone pricing formula?

Keystone pricing is the traditional retail practice of setting the retail price at double the wholesale price (or double the cost). Wholesale = Retail ÷ 2. This gives the retailer a 50% gross margin. As a manufacturer or brand selling wholesale, keystone means your wholesale price should be at least 2× your fully-loaded COGS (including overhead and packaging). Many large retailers like boutiques and gift shops expect keystone pricing and won't buy below it.