Markup, margin and wholesale selling price calculator
Enter the cost and the margin you want to make: the calculator gives you the wholesale price, the equivalent markup and the quantity price breaks, and warns you when a discount pushes you below your minimum margin.
| Quantity | Discount | Price | Margin | Resale price |
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Once prices are set, the price list generator builds the PDF to send to customers.
The mistake that costs wholesalers the most money
Profit measured on the selling price. It answers: out of every 100 a sale brings in, how much is profit? Price 100, cost 70: 30 is left, a 30% margin.
Profit measured on cost. It answers: how much is added to cost to build the price? Cost 70, price 100: 30 is added on 70, a 43% markup.
Most people build the price by adding a percentage to cost and call it margin. But adding to cost is markup; margin is measured on the selling price. With a cost of 1,000, adding 30% gives 1,300 and the real profit on the sale is 23%. To really make 30%, the price has to be 1,000 ÷ 0.70 = 1,428.57.
cost ÷ (1 − margin)cost × (1 + markup)margin ÷ (1 − margin)The same goes for volume discounts: they come out of the margin, not the price. The guide to tiered volume pricing explains how to set the breaks without giving margin away.
Frequently asked questions
What is markup?
It is the percentage added to a product's cost to reach its selling price. If something costs 70 and sells for 100, 30 was added: the markup is 30 ÷ 70 = 43%. It is not the same as margin, which measures that profit on the price: 30 ÷ 100 = 30%.
How do you calculate the selling price from a profit margin?
Price = cost ÷ (1 − margin). With a cost of 1,000 and a 30% margin, the price is 1,000 ÷ 0.70 = 1,428.57. The usual mistake is adding 30% to cost: that gives 1,300 and the real margin ends up at 23%.
What is the difference between margin and markup?
Margin is profit over the selling price; markup is profit over cost. A product that costs 100 and sells for 150 has a 50% markup and a 33% margin.
How much volume discount can you give without losing money?
The discount comes out of the margin, not the price. With a 30% margin, a 10% discount leaves the margin at 22%. The calculator flags in red any break that falls below the minimum margin you set. In VentasxMayor, the discount engine applies those breaks on every order automatically.