Retail Price Calculator

Every business owner has struggled with product pricing at some point, especially if you sell wholesale and markup. If this is something you are struggling with, you aren't the only one.

What Is Retail Price? 

A retail price is the price goods or services are sold at in retail. In essence, it is what customers pay for their goods at a retail store. Retail price is the term used for the final sale price total. This means they aren't purchasing the product to re-sell it, they are purchasing the product for their own consumption. 

Retail price is different from distributor or manufacturer price. In a competitive market, the retailer assigns the retail price based on supply, demand, and costs. When a retailer assigns the retail price, they will try to do so to get the right profit margin to keep their business afloat while remaining competitive within the market. 

Read more: What is a Retail Price?

How To Calculate The Retail Price 

There are a variety of formulas to calculate gross margin and gross profit, markups, markdowns, and everything else that goes into a pricing strategy. 

You can calculate the retail price manually with a formula. This formula involves using your cost price or cost of goods, including the production cost per unit, as well as any expenses and total overheads, divided by the number of units produced. 

The wholesale price is the cost and profit margin combined, while the recommended retail price (RRP) is the wholesale price multiplied by 2-2.5. 

Cost Price = Production Cost Per Unit + ((Total Overheads + Admin EXpenses) / Number of Units Produced)

Wholesale Price = Cost + Profit Margin

Recommended Retail Price (RRP) = Wholesale Price X 2 - 2.5

If you don't feel confident in your ability to calculate the retail price with the formula, you can use the handy retail price calculator above to find the recommended selling price for your products. 

How To Use the Retail Price Calculator 

While it isn't difficult to use the formula, there are benefits to using a markup calculator. A retail price calculator helps you ensure the right amount of profit per unit, provided you have accurate figures. It can't take your competition's pricing strategy into account, but it is straightforward. 

You will need several different figures ready to use the calculator. You need your product cost per unit, total overheads, admin expenses, number of units products, cost price, profit margin, and your wholesale price. Once you input this information into the calculator, the calculator will do the rest, providing you with a recommended retail price.

How QuickBooks can help

QuickBooks' main aim is to help small businesses grow with the right software. This includes our cloud accounting software. We've even created a mobile accounting app so that you can manage your finances on the go. Visit our pricing page to find a plan that is right for your business or sign up for a free 30-day trial.

For more free resources that can help you run and grow your business visit our free tools and templates hub.