MarkupMargin Studio — Free Interactive In-Browser Studio
Multi-SKU Landed Cost, Target Wholesale & Retail MSRP Input (CSV / TSV)
Markup % vs Gross Margin %, B2B Wholesale Tier & Distributor Net Profit Waterfall
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Supports CSV, JSON, TXT, XML & Log Streams
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Quick Reference & Frequently Asked Questions
What is the exact difference between Markup % and Gross Margin %?
Markup % measures profit as a percentage of your cost: (Price - Cost) / Cost. Gross Margin % measures profit as a percentage of the selling price: (Price - Cost) / Price. A 50% markup on a $10 item ($15 price) equals only a 33.3% gross margin, whereas a 50% gross margin requires a 100% markup ($20 price).
What is Keystone Pricing in wholesale and retail?
Keystone pricing means doubling the cost (a 100% markup, or 50% gross margin). In B2B wholesale, brands typically aim for at least a 2.0x to 2.5x markup from landed cost to Wholesale Price, and retailers apply another 2.0x keystone markup from Wholesale to MSRP (requiring a 4.0x–5.0x total cost-to-MSRP ratio).
How do Faire wholesale commissions affect my B2B gross margin?
When a boutique orders through Faire, Faire deducts a commission (typically 15% on reorder/direct relationships or up to 25% + $10 on marketplace opening orders) plus payment processing fees. You must deduct this commission from your wholesale price to find your true net B2B margin.
How do I convert a desired Gross Margin % into the required Markup %?
Required Markup % equals Target Gross Margin / (1 - Target Gross Margin). For example, to achieve a 60% gross margin, you need a markup of 0.60 / (1 - 0.60) = 1.50, or 150% markup (selling at 2.5x cost).