1. What is Retail Markup?

Retail markup is the difference between the wholesale cost of a product and its retail price, expressed as a percentage of the wholesale cost. It represents the amount added to the cost to cover expenses and profit.

2. How Does the Calculator Work?

The calculator uses the markup formula:

Where:

• Retail Price — The selling price to customers (USD)
• Wholesale Cost — The cost to purchase the item (USD)

Explanation: The formula calculates what percentage of the wholesale cost is being added to determine the retail price.

3. Importance of Markup Calculation

Details: Calculating markup is essential for retailers to ensure profitability, price products competitively, and maintain healthy business margins.

4. Using the Calculator

Tips: Enter both retail price and wholesale cost in USD. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical retail markup percentage?
A: Markup varies by industry but typically ranges from 50% to 100% for most retail products.

Q2: How is markup different from margin?
A: Markup is based on cost, while margin is based on selling price. Margin = (Retail Price - Cost) / Retail Price.

Q3: Should I use the same markup for all products?
A: No, markup should vary based on product category, demand, competition, and other market factors.

Q4: How often should I review my markup percentages?
A: Regularly, especially when costs change, market conditions shift, or sales volumes fluctuate.

Q5: Can markup be too high?
A: Yes, excessive markup can make products uncompetitive and drive customers away.