How wholesale margin and markup work
Enter your cost and net wholesale price in dollars per unit, then enter a whole number of units sold. Use the same unit for price and cost. Enter zero when an amount or quantity is zero.
Formula
Multiply wholesale price by units sold for revenue, and unit cost by units sold for cost of goods. Subtract cost of goods from revenue for gross profit. Gross margin is gross profit divided by revenue, times 100. Markup is the difference between unit price and unit cost divided by unit cost, times 100. Gross margin is undefined at zero revenue and markup is undefined at zero unit cost.
Enter a $12 unit cost, a $20 wholesale price and 1,000 units sold. Revenue is $20,000, cost of goods is $12,000 and gross profit is $8,000. Gross margin is 40% and markup is 66.7%.
Use the Inventory Turnover Calculator to compare period cost of goods with average inventory.
