Set a wholesale price from unit cost and target markup, and check the margin it leaves.
Markup is applied to cost while margin is measured against price, so the two are never equal: a 120% markup is a 54.5% margin. Any discount comes off the selling price and therefore reduces margin faster than it reduces price. Pricing from a target margin rather than a markup is what stops a wholesale line being sold at a loss once discounts are applied.
Wholesale Price
Wholesale Price = cost × (1 + markup %); margin % = profit ÷ selling price
Wholesale Price = cost × (1 + markup %); margin % = profit ÷ selling price Markup is applied to cost while margin is measured against price, so the two are never equal: a 120% markup is a 54.5% margin. Any discount comes off the selling price and therefore reduces margin faster than it reduces price.
Pricing from a target margin rather than a markup is what stops a wholesale line being sold at a loss once discounts are applied.
This calculator takes 4 inputs: Unit cost, Markup on cost, Expected discount off list, Tax added at sale. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.