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Retail Price Calculator: Price From Cost

Turn a cost into a retail price by target margin, markup or keystone. See the profit, margin and markup, and the shelf price with sales tax or VAT.

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End the price in .99

Retail price

33.45

Profit per unit

15.05

Margin

45%

Markup

81.8%

By margin: price = cost ÷ (1 − margin ÷ 100). By markup: price = cost × (1 + markup ÷ 100). Keystone: price = cost × 2.

How to calculate a retail price

A retail price calculator answers the buyer's first question: at what price do I sell this? Start from the landed cost (the price you paid plus freight, duty and fees) and choose how to price it.

How to calculate a retail price

MethodFormulaCost 18.40
Target margin 45%cost ÷ (1 − 0.45)33.45
Markup 80%cost × 1.8033.12
Keystonecost × 236.80

Margin is profit as a share of the price; markup is profit as a share of the cost. A 50% margin is a 100% markup, which is keystone pricing, a common rule in gift, apparel and furniture retail.

Charm pricing

Prices ending in .99 are read as cheaper than the next whole number, so many shops round up to the next .99. The calculator does it for you and shows the real margin after rounding.

Before you set the price

Use the full landed cost from the landed cost calculator, check the price against competitors, and leave room for future markdowns. Selling to other shops? The wholesale price calculator works back from the retail price.

Copy the result, or save it as a PDF to attach to an email or a report. Nothing you type leaves your browser.

Features

  • By margin, markup or keystone
  • Optional .99 ending
  • Profit per unit
  • Margin and markup shown
  • Shelf price with tax
  • Copy or PDF

Frequently asked questions

How do I calculate the selling price from cost and margin?

Divide the cost by (1 − margin). For a cost of 30 and a 40% margin, 30 ÷ 0.6 = 50.

What is keystone pricing?

Doubling the cost to set the retail price. It gives a 50% margin, or a 100% markup.

Should the price include sales tax?

In the US the shelf price usually excludes sales tax; in the UK, EU, India and many other countries consumer prices include VAT or GST. Add your rate to see the shelf price with tax.

Is the calculator free?

Yes. No sign up. It runs in your browser, and you can copy the result or save it as a PDF.

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