🏪 Retail Price Calculator — Markup, Margin & Price Check
Enter your wholesale cost and choose your pricing method. Get the exact retail selling price, profit per unit, and margin — with optional charm-price rounding built in.
🏪 Retail Price Calculator
Three modes — price from markup %, price from target margin %, or check what margin your current price delivers
Markup vs Margin — Don't Confuse Them
Markup and margin describe the same profit dollar from opposite directions. Markup is calculated on cost. Margin is calculated on selling price. Confusing the two is one of the most expensive pricing mistakes in retail — it means systematically undercharging without realising it.
Retail Price (from margin) = Cost ÷ (1 − Margin ÷ 100)
Margin % = Profit ÷ Selling Price × 100
Markup % = Profit ÷ Cost × 100
$20 cost, 50% margin target → price = $20 ÷ 0.50 = $40 (same result, different input)
Retail Markup Benchmarks by Category
| Category | Typical Markup | Margin This Gives | Note |
|---|---|---|---|
| Clothing & Apparel | 100–150% | 50–60% | Factor in seasonal markdowns |
| Jewellery & Accessories | 200–500% | 67–83% | High perceived value, low COGS |
| Home & Décor | 100–200% | 50–67% | Strong gifting premium |
| Beauty & Cosmetics | 100–300% | 50–75% | Consumable repeat purchase |
| Footwear | 80–120% | 44–55% | Higher for own-brand styles |
| Sporting Goods | 40–100% | 29–50% | Wide range by subcategory |
| Electronics | 20–50% | 17–33% | Low margin, high ticket volume |
| Grocery & FMCG | 15–40% | 13–29% | Volume-driven, very thin |
How to Round Your Price for Maximum Conversions
Use .95 or .99 for everyday and impulse purchases
Charm pricing works because buyers read left-to-right and anchor on the first digit. $29.95 feels meaningfully cheaper than $30.00 even though the gap is only $0.05. Use charm endings for fashion, homewares, gifts, and any product where the buy decision is emotional or spontaneous.
Use round numbers for premium and luxury products
$200 signals confidence and quality. $197.99 feels discounted — which actively undermines premium brand positioning. If you sell high-end products, round up and own the price. Your customers expect premium to look premium.
Keystone pricing: when 100% markup is the right starting point
Keystone pricing (doubling your wholesale cost) has been a retail rule of thumb for decades because it is easy to apply consistently and generally sufficient to cover typical retail overheads. Use it as your starting point, then adjust upward if demand is strong or your brand positioning warrants it.
5 Costs Retailers Miss When Setting Prices
- Payment processing fees (1.5–3.5%). Card fees reduce effective margin on every transaction. At 2.9% processing, a 50% margin product nets roughly 47.1% after fees.
- Landed cost, not invoice cost. Your COGS must include inbound freight, customs duties, and inspection fees — not just the supplier invoice.
- Shrinkage reserve (1–2%). Theft, damage, and admin error average 1.4–1.6% of revenue across retail. Price to absorb this in your target margin.
- Markdown reserve. End-of-season clearance reduces average selling price across your range. Build a markdown allowance into initial pricing for seasonal or trend-driven stock.
- Returns and refunds. Online return rates of 15–25% mean average net revenue per order is lower than sticker price. In high-return categories, add a return cost estimate to your effective COGS.