Donaldson R F Wholesale & Retail Price Calculator
Build a price from the factory gate to the shelf: cost, wholesale price, retail price and VAT — with the profit at each step.
Margin or markup?
Markup is the percentage you add to the cost; margin is the share of the selling price that is profit. A product that costs £10 and sells for £20 has a markup of 100% but a margin of 50%. The same profit always looks smaller as a margin than as a markup, so make sure you use the same one as the person you are negotiating with. Retailers often talk about “keystone” pricing (retail = twice wholesale, a 50% margin), while manufacturers often price wholesale with a margin of 30–50%, but the right numbers depend heavily on your industry, volume and competition.
The wholesale price is what you charge shops; the retail price is what the shop charges customers. Extra costs per unit (delivery, import duty, packaging) are added to the cost before your margin is applied. VAT is added on top of the retail price (in the UK, prices shown to consumers must include VAT) and is passed on to the tax authority, so it is not profit for anyone. Rounding to prices such as £9.99 slightly changes the shop's real margin, which the table shows. This calculator helps with planning only and is not tax or financial advice; check VAT and pricing rules for your business.