Wholesale to Retail Margin Calculator
Work out the profit per unit and the margin percentage when you buy at wholesale price and sell at retail price.
Recent
Formula
How the calculation works
The calculator subtracts the wholesale price from the retail price to get the profit earned on one unit.
It divides that unit profit by the wholesale price and multiplies by one hundred to express the margin as a percentage.
The unit profit is then multiplied by the quantity to show the total profit for the whole order.
Common mistakes
- Forgetting transport, loading and shop overhead costs, which are not in the wholesale price but still reduce real profit.
- Dividing the profit by the retail price instead of the wholesale price, which gives a smaller percentage than the margin defined here.
When to use it
- Shopkeepers use it to set a retail price that covers transport, rent and a fair profit on each item.
- Traders use it to compare margin across products before deciding what to stock in bulk.
Worked example
Buying at 800 taka wholesale and selling at 1000 taka retail gives a unit profit of 200 taka and a margin of 25 percent, so 100 units bring a total profit of 20000 taka.
Common questions
Why is margin based on the wholesale price here?
This tool follows the trader convention of measuring margin against the buying price, so the figure shows the return on what you paid for the goods.
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