E-commerce Cost-Plus Pricing Calculator
Calculate the selling price using cost-plus pricing. Enter total cost and desired markup percentage to find the optimal retail price and margin.
Wholesale to Retail Markup Calculator
Convert wholesale cost to retail price using markup percentage. See the resulting margin, profit per unit, and compare markup vs. margin side by side.
$
%
$
Packaging, labels, etc.
$
%
Retail Price⧉
$40.00
2x wholesale cost
Gross Profit/Unit⧉
$20.00
Margin: 50.00%
Platform Fee/Unit⧉
$6.00
Effective rate: 15.00%
Net Profit/Unit⧉
$7.00
Net margin: 17.50%
Monthly Revenue⧉
$12,000.00
300 units sold
Monthly Net Profit⧉
$2,100.00
Annual: $25,200.00
Price for Target Margin⧉
$49.09
To achieve 30% net margin
Break-Even Units⧉
143 units
Units to generate $1,000 net profit
Price Breakdown per Unit
COGS 50%
Shipping 13%
5%
Fees 15%
Profit 18%
Net Margin vs Target
17.50% net
Target: 30%
| Markup | Retail Price | Platform Fee | Net Profit | Net Margin |
|---|---|---|---|---|
| 50% | $30.00 | $4.50 | -$1.50 | -5.00% |
| 100% | $40.00 | $6.00 | $7.00 | 17.50% |
| 150% | $50.00 | $7.50 | $15.50 | 31.00% |
| 200% | $60.00 | $9.00 | $24.00 | 40.00% |
| 300% | $80.00 | $12.00 | $41.00 | 51.20% |
| Channel | Fee/Unit | Fee Rate | Net Profit | Net Margin |
|---|---|---|---|---|
| Amazon | $6.00 | 15.00% | $7.00 | 17.50% |
| Shopify | $1.46 | 3.70% | $11.54 | 28.90% |
| Ebay | $5.30 | 13.30% | $7.70 | 19.30% |
| Etsy | $2.85 | 7.10% | $10.15 | 25.40% |
| Walmart | $4.80 | 12.00% | $8.20 | 20.50% |
Planning notes, formulas, and examples
About the Wholesale to Retail Markup Calculator
The wholesale-to-retail markup is the percentage increase applied to your wholesale cost to determine the retail selling price. A 100% markup means doubling the wholesale price; a 50% markup means adding half. Understanding the difference between markup and margin is critical for pricing profitability.
This calculator converts any wholesale cost to a retail price based on your desired markup percentage, then shows the corresponding profit margin. It also accounts for platform fees so you can see your actual net profit and true margin after all costs.
Whether you're a reseller, dropshipper, or retailer sourcing products at wholesale, This calculator helps you set prices that cover costs and generate your target profit.
When This Page Helps
Confusing markup and margin is one of the most common pricing mistakes. A 50% markup is only a 33% margin. This calculator makes the relationship clear and accounts for platform fees to show your real profit. Use it to ensure wholesale sourcing deals are actually profitable.
How to Use the Inputs
- Enter the wholesale cost per unit.
- Enter your desired markup percentage.
- Optionally enter platform fees as a percentage.
- View the retail price, profit per unit, and actual margin.
- Adjust the markup to achieve your target margin or price point.
Formula used
Retail Price = Wholesale Cost × (1 + Markup%)
Gross Profit = Retail Price − Wholesale Cost
Platform Fees = Retail Price × Fee%
Net Profit = Retail Price − Wholesale Cost − Fees
Margin = Net Profit / Retail Price × 100Example Calculation
Result: Retail: $40.00 | Profit: $14.00 | Margin: 35%
Wholesale: $20. Markup 100%: $20 × 2 = $40 retail. Gross profit: $20. Platform fee: $40 × 15% = $6. Net profit: $40 − $20 − $6 = $14. Margin: $14 / $40 = 35%. Despite a 100% markup, the actual margin is only 35% after platform fees.
Tips & Best Practices
- Industry standard keystone markup is 100% (2× wholesale), yielding a 50% gross margin before fees.
- After marketplace fees (15–20%), a keystone markup yields only 30–35% net margin.
- Aim for at least a 150% markup if selling on Amazon/eBay to maintain 30%+ net margin.
- Negotiate minimum order quantities (MOQ) with wholesalers for volume discounts on cost.
- Factor in return rates — a 10% return rate effectively reduces your margin by ~10%.
- Compare the final retail price to the market price before committing to a wholesale deal.
Markup vs. Margin Quick Reference
| Markup | Margin | |--------|--------| | 25% | 20% | | 50% | 33.3% | | 100% | 50% | | 150% | 60% | | 200% | 66.7% |
To convert: Margin = Markup / (1 + Markup). Markup = Margin / (1 − Margin).
Setting the Right Wholesale Markup
Your markup must cover not just product cost but all per-unit expenses: platform fees (15–30%), shipping to customer ($3–10+), packaging ($0.50–3), advertising ($2–10+), returns (5–15% return rate), and customer service costs. A realistic all-in markup for e-commerce is often 150–250%.
Wholesale Sourcing Economics
The best wholesale deals combine low unit cost, large minimum order quantities, and exclusive distribution. Volume discounts of 10–30% are common when ordering 10× the minimum MOQ. Always request samples before committing to large orders to verify quality.
Sources & Methodology
Last updated:
Frequently Asked Questions
Markup is profit as a percentage of COST. Margin is profit as a percentage of SELLING PRICE. A 100% markup means you double the cost to get the price, resulting in a 50% margin. A 50% markup results in a 33.3% margin. Margin is always lower than markup for the same dollar profit.
Keystone markup is a 100% markup (doubling the wholesale cost). If you buy at $10 and sell at $20, that's keystone. It's a traditional retail benchmark but may be insufficient for e-commerce sellers due to platform fees, shipping costs, and advertising expenses.
To achieve a X% margin: Markup% = X / (1 − X). For 40% margin before fees: 0.40 / 0.60 = 66.7% markup. For 40% margin after 15% fees: you need to work backward from the net margin equation, typically requiring 120–150% markup.
Major wholesale sourcing platforms include Alibaba (manufacturers), Faire (curated wholesale marketplace), Tundra (no-fee wholesale), and direct manufacturer contacts at trade shows. For domestic wholesale, directories like ThomasNet and local trade associations are valuable resources.
E-commerce markups typically range from 50% (commodity products with high competition) to 300%+ (unique, proprietary, or branded products). Fashion and accessories often carry 200–300% markup. Electronics are lower at 30–70%. The right markup depends on competition, demand, and perceived value.
Not necessarily. Different channels have different fees, customer expectations, and competitive dynamics. Your website (no platform fees) can offer lower prices or better margins. Amazon and eBay pricing should account for their respective fee structures. Use channel-specific markups.