Setting the right price is critical for business sustainability. This calculator helps you determine the ideal retail price based on your wholesale costs and desired markup percentage. It also calculates your gross profit and margin to ensure your business remains profitable after accounting for the cost of goods sold (COGS).
Understanding the Terms
Unit Cost: The total price you paid to acquire or manufacture one single unit of your product.
Markup: The percentage added to the cost price to reach the selling price. (Selling Price = Cost + Markup).
Gross Profit: The actual dollar amount earned per unit after subtracting the cost from the selling price.
Gross Margin: The percentage of the selling price that is profit. Unlike markup, margin is calculated relative to the final sales price.
Markup vs. Margin: A Practical Example
If you buy a product for $100.00 and apply a 50% markup:
The selling price becomes $150.00.
Your gross profit is $50.00.
Your gross margin is 33.33% ($50 profit divided by $150 selling price).
This calculator handles these complex conversions instantly, allowing you to experiment with different pricing strategies to meet your financial goals.
function calculateRetailPrice() {
var cost = parseFloat(document.getElementById('itemCost').value);
var markup = parseFloat(document.getElementById('markupPercent').value);
var tax = parseFloat(document.getElementById('taxRate').value) || 0;
if (isNaN(cost) || isNaN(markup) || cost <= 0) {
alert("Please enter valid positive numbers for Cost and Markup.");
return;
}
// Calculate Selling Price (Pre-Tax)
var markupAmount = cost * (markup / 100);
var sellingPrice = cost + markupAmount;
// Calculate Profit and Margin
var profit = sellingPrice – cost;
var margin = (profit / sellingPrice) * 100;
// Calculate Total with Tax
var taxAmount = sellingPrice * (tax / 100);
var totalWithTax = sellingPrice + taxAmount;
// Display Results
document.getElementById('resSellingPrice').innerText = "$" + sellingPrice.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotalTax').innerText = "$" + totalWithTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resProfit').innerText = "$" + profit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resMargin').innerText = margin.toFixed(2) + "%";
document.getElementById('priceResult').style.display = "block";
}