Retail Price Calculator
(Shelf Price From Wholesale Cost)
Enter what you pay for one unit, then a target margin or a multiplier. The calculator shows the shelf price, your profit, and the margin and markup behind it.
Step 1 — What You Paid
What you paid your supplier or wholesaler per unit
Step 2 — How to Price It
Profit as a % of the shelf price you'll charge customers
Calculated Results
Enter your wholesale cost and a target margin or multiplier.
This retail price calculator is for shops and online sellers that buy products to resell. Enter what you pay for one unit, then choose a target margin or a multiplier. It returns the shelf price, your profit per unit, and the margin and markup that price gives. You can add a sales tax rate to see the checkout price.
How to Calculate a Retail Price
There are two common ways to get from wholesale cost to shelf price.
An item bought for $15 and priced for a 50% margin sells at 15 ÷ 0.50 = $30. The profit is $15. The same item at a 2.5× multiplier sells at $37.50, a 60% margin.
Doubling the cost is known as keystone pricing. It is a 2.0× multiplier, a 100% markup and a 50% margin, three ways of describing one price.
Multiplier, Margin and Markup
Each multiplier has one margin and one markup that go with it.
| Multiplier | Margin | Markup | Price on a $15 cost |
|---|---|---|---|
| 1.5× | 33.3% | 50% | $22.50 |
| 2.0× (keystone) | 50% | 100% | $30.00 |
| 2.2× | 54.5% | 120% | $33.00 |
| 2.5× | 60% | 150% | $37.50 |
| 3.0× | 66.7% | 200% | $45.00 |
The Markup vs Margin Calculator converts any other figure.
What to Count as Cost
Use the landed cost: what the unit costs by the time it is on your shelf. If a $15 item costs $1 a unit to ship in, the cost is $16, and a 50% margin needs a $32 price. Pricing from $15 would leave a 46.7% margin at $30.
The margin from this calculator is gross margin. It has to cover rent, wages, card fees and marketing before anything is left as profit, so choose a margin from what your shop costs to run. A round multiplier alone will not tell you that.
Sales Tax and the Shelf Price
Sales tax is added on top of the retail price and passed on, so leave it out of margin calculations. With an 8% rate, the $30 item costs the customer $32.40 and your revenue is still $30. In the United States, shelf prices are usually shown before sales tax. In countries with VAT, the displayed consumer price normally includes it, so there you work back from the tax-inclusive price.
Checking the Price Against the Market
- Supplier terms: a suggested retail price (MSRP) or a minimum advertised price (MAP) may limit what you can show.
- Competitors: if the same product is $27 elsewhere, a $30 price from a formula will be hard to hold.
- Price points: rounding $30 to $29.99 barely changes the margin.
If you make the product yourself, start with the Wholesale Price Calculator.
How to Use the Retail Price Calculator
- Enter the wholesale cost: Type what you pay your supplier for one unit. Add inbound shipping per unit if you pay it.
- Choose a pricing method: Pick target margin to set the share of the price you keep, or multiplier to multiply the cost by a number such as 2.0.
- Enter the margin or multiplier: Type the percentage or the multiplier.
- Add sales tax: Optional. Open the sales tax section and enter the rate to see what the customer pays at checkout.
Frequently Asked Questions
How do I calculate a retail price from wholesale cost?
Either divide the cost by 1 minus the margin you want, or multiply the cost by a fixed number. A $15 item at a 50% margin is 15 ÷ 0.50 = $30. A $15 item at 2.5× is $37.50.
What is keystone pricing?
Keystone pricing sets the retail price at double the wholesale cost. It is the same as a 2.0× multiplier, a 100% markup and a 50% margin. A $15 item is priced at $30.
What margin does a multiplier give?
Margin = 1 − 1 ÷ multiplier. A 2.0× multiplier gives a 50% margin, 2.5× gives 60% and 3.0× gives 66.7%.
Is the retail price before or after sales tax?
The retail price here is before sales tax. Sales tax is collected from the customer and passed to the tax authority, so it is not part of your revenue or your margin. The calculator shows the price with tax as a separate figure.
What is the difference between MSRP and MAP?
MSRP is the manufacturer's suggested retail price, a recommendation for the shelf price. MAP is a minimum advertised price, a brand's policy on the lowest price a retailer may advertise. Check your supplier agreement for either before setting a price.
Does the margin here cover my other costs?
No. It is gross margin: price minus what you paid for the item. Rent, staff, card fees and marketing all have to be paid out of it.
Formulas and worked examples checked in October 2026.