Wholesale to Retail Price Calculator: The Short Answer
A brand that sells a hoodie to shops for £25 wants to know what the shopper will pay, and a shop owner looking at that £25 invoice wants to know what the hoodie must sell for. The wholesale to retail price calculator answers both. If the retailer doubles the wholesale price and the garment carries standard-rate VAT, a £25 wholesale price becomes a £50 price before VAT and a £60 shelf price. Run the calculator in reverse and a £60 shelf price supports a wholesale price of up to £25 at the same markup.
UK shelf prices to consumers normally include VAT, while trade prices are quoted before VAT. Forgetting that difference is the quickest way to price a range wrongly, so this page keeps the VAT step explicit.
Use the Wholesale to Retail Price Calculator
Choose the direction first. In the forward direction you enter the wholesale price before VAT and the markup the retailer applies, and the calculator returns the retail price before VAT, the VAT, and the shelf price a customer pays. In the reverse direction you enter the shelf price including VAT and the markup, and the calculator returns the wholesale price the retailer can afford to pay.
Wholesale to retail price calculator
Retailer markup, VAT and price points
Gross figures only. The retailer still pays rent, staff, marketing and returns out of its margin. VAT treatment depends on the garment, so check the rules before you rely on a zero rate.
The wholesale to retail price calculator also handles price points, because the rounding option helps with them. Many shops prefer a shelf price ending in .99 or a whole pound, and rounding up costs the customer a few pence while giving the retailer a little extra margin. The retailer gross margin shown is the share of the price before VAT that is left after paying for the garment.
How a Wholesale Price Becomes a Retail Price
Three steps sit between an invoice and a price tag. The retailer adds a markup to cover its costs and profit, VAT is added on top of the resulting price, and the number may then be rounded. Each step changes the answer, and the order matters: markup comes first and VAT last, because VAT is charged on the selling price, not on the retailer's cost.
From wholesale price to shelf price
- 1Start from the trade priceUse the wholesale price before VAT.
- 2Apply the retailer markupRetail price before VAT = wholesale × (1 + markup).
- 3Add VATShelf price = retail price × (1 + VAT rate).
- 4Round to a price pointRound up to a whole pound or a .99 ending if you wish.
Our clothing markup calculator explains the difference between markup and margin, which matters here: a retailer that doubles the wholesale price earns a 50% margin on the price before VAT, not a 100% margin.
Common Retailer Markups and Margins
The table links each markup to the retail price before VAT, the shelf price with VAT and the retailer margin, using a £25 wholesale price. It shows how quickly the shelf price climbs and why small changes in markup matter.
Retail price at different retailer markups on a £25 wholesale price
| Retailer markup | Retail price before VAT | Shelf price with 20% VAT | Retailer gross margin |
|---|---|---|---|
| 60% | £40.00 | £48.00 | 37.5% |
| 80% | £45.00 | £54.00 | 44.4% |
| 100% | £50.00 | £60.00 | 50.0% |
| 120% | £55.00 | £66.00 | 54.5% |
| 150% | £62.50 | £75.00 | 60.0% |
Calculated with retail before VAT = wholesale × (1 + markup) and shelf price = that × 1.2. Illustrative; the markups shown are not recommendations.
Retailers choose markups to cover their own costs, so the right figure depends on the shop, the product and the competition. A brand that uses a wholesale to retail price calculator early can see which retailer markups its price list can survive. A brand setting a wholesale price should work backwards from the shelf price its customers will accept, which is what the reverse mode of the calculator is for.
VAT on Clothing: The 20% and 0% Cases
Most clothing sold in the UK is standard-rated, so the shelf price includes 20% VAT. Clothing designed for young children can be zero-rated, but only if it meets the conditions in HMRC's guidance: it must be designed for and suitable only for young children, and it must not be made of fur. Adult-sized garments do not qualify, and labelling, packaging and listings must make clear that the garment is for young children.
The calculator lets you choose a 0% rate for qualifying young children's clothing, but whether a garment qualifies is decided by HMRC's rules, not by the calculator. Read HMRC VAT Notice 714 on young children's clothing and footwear and, if in doubt, ask HMRC or an adviser. Current rates are on GOV.UK VAT rates.
Our UK VAT calculator for clothing adds or removes VAT from any price, which helps when a supplier quote or a competitor price is shown on a different basis from yours.
Where the Shelf Price Goes
The pie divides a £60 shelf price into its parts under the 100% markup example. A sixth goes to HMRC as VAT, and the rest is split between the brand's wholesale price and the retailer's margin.
Illustrative split of a £60 shelf price
- Wholesale price to the brand41.7%
- Retailer margin41.7%
- VAT16.7%
Illustrative. £25 wholesale, £25 retailer margin and £10 VAT, shares shown rounded to one decimal place. The brand pays its own product cost out of the wholesale price.
Seen this way, the brand's slice is the one that must cover the garment, the freight, the duty and the brand's own overheads. If that slice is too small, the answer is rarely to push the markup higher; it is more often to revisit cost. The guide to pricing clothing for wholesale and retail shows how brands handle that.
Shelf Prices Across a Range
A range rarely has one price. The table applies the same 100% retailer markup and 20% VAT to a spread of wholesale prices, so you can see how a brand's price list turns into a shop's price tags. It is a quick way to check that the steps between your styles look sensible on the shelf.
Shelf prices from a range of wholesale prices at a 100% markup and 20% VAT
| Wholesale price before VAT | Retail price before VAT | Shelf price with VAT | Retailer gross profit |
|---|---|---|---|
| £12.00 | £24.00 | £28.80 | £12.00 |
| £18.00 | £36.00 | £43.20 | £18.00 |
| £25.00 | £50.00 | £60.00 | £25.00 |
| £32.00 | £64.00 | £76.80 | £32.00 |
| £45.00 | £90.00 | £108.00 | £45.00 |
Calculated as wholesale × 2 for retail before VAT and × 1.2 for the shelf price. Illustrative figures. Retailer gross profit is before the shop's own costs.
Gaps that look even on a price list can look uneven on a rail once VAT and rounding are applied, so run the wholesale to retail price calculator across your whole range before you send a line sheet. Check that your lowest and highest shelf prices sit where your customers expect them to, and that no style falls awkwardly close to another.
Rounding to a Price Point
Rounding looks cosmetic, but it changes margin slightly and affects how shoppers read the price. Rounding up always gives the retailer a little more than the calculated price, while rounding down gives it a little less. The bar chart shows how a calculated shelf price of £55.20 lands at three common price points.
Where a £55.20 calculated shelf price lands when rounded up
Shelf price
Illustrative. Rounding up adds between £0.79 and £0.80 to this price and a small amount of margin.
Pick a rule and apply it across the range so prices look consistent. Mixing endings can look careless, and the extra margin from rounding is usually small compared with getting the markup and VAT right.
Selling Wholesale: What a Retailer Looks For
A wholesale price has to work for the shop as well as for you. Retailers compare your price with their expected shelf price and ask whether the margin justifies the shelf space. A wholesale to retail price calculator is most useful when you use it before the conversation, not during it. Our guide to selling clothing wholesale to retailers in the UK covers how to approach shops, and the jeans wholesale price and retail markup guide shows the same logic on a denim range.
Before you quote a wholesale price
- Confirm your landed cost per piece and your target margin
- Estimate the shelf price your customers will accept
- Check that the retailer margin at that shelf price is acceptable
- Decide on minimum order quantities and terms in writing
- Allow for samples, returns policy and any discount you will offer
A practical checklist, not a legal one. Your trading terms should be agreed with the retailer in writing.
How Ruhrose Supports Your Pricing
Ruhrose develops hoodies, fleece, jersey, denim and woven casualwear for UK buyers, with production in Bangladesh. A wholesale price is only as safe as the cost behind it, so we explain how our quotes are built, sample before bulk and help you plan quantities so the price you offer retailers stays firm. You can see what we make on Ruhrose's clothing manufacturing pages.
Before you publish a wholesale price list, ask yourself one question: if a retailer asked for ten percent off, would you still make a margin you could accept?