Business
Retail Price Calculator
Choose markup or margin mode, enter cost and target percentage, get the retail price.
Price from cost
Markup and margin are not the same percentage. Use the mode that matches how you plan — then check the other figure in the breakdown. This calculator turns cost plus your chosen markup or margin into a retail price. Clarify language with markup vs margin and wholesale chains with wholesale price. Verify with gross margin and set targets via reverse margin. Competitor tickets may force a different number; revisit cost if the market wins. Add VAT according to how you display prices. Commercial arithmetic only. Architects of price architecture — good, better, best — should run each tier through the same cost basis so mid-tier margins do not accidentally undercut the premium line. Employee discount policies need a separate check so staff sales do not redefine your public margin targets. Log the chosen mode (markup versus margin) in your pricing SOP. Price architecture across good, better and best tiers should share one cost basis so the mid tier does not accidentally undercut the premium line on margin pounds. Employee discount policies need a separate check so staff sales do not redefine your public targets. Log whether you priced from markup or margin in the team SOP.
Worked example
Cost £18. You want 40% margin: retail = 18 ÷ (1 − 0.40) = £30. The same cost with 40% markup is only £25.20 — a very different shelf price. If VAT-inclusive display is required at 20%, an ex-VAT £30 becomes £36 on the ticket.
Limits and assumptions
Ignores MAP policies and competitor clustering. Fees on marketplaces need a higher target or a fee-inclusive cost. Not legal pricing advice.
Frequently asked questions
Should I price from markup or margin?
Use whichever your team already speaks. Convert if a buyer or supplier uses the other term.
Do I add VAT on top?
If you display VAT-inclusive prices, add VAT after the ex-VAT retail figure according to your scheme.
How do competitor prices fit in?
Maths gives a floor or target; the market may force a different ticket. Revisit cost if the market wins.
What about psychological pricing?
Round after the margin maths, and re-check that the ending still protects your target.
Can I include shipping in retail?
Either raise price to absorb postage or charge shipping separately — do not forget it in contribution.