Cost to Retail Ratio Calculator

Cost to Retail Ratio Calculator calculator can be used to determine the relationship between product costs and retail prices, helping businesses set appropriate pricing strategies and assess profitability.

Input Parameters

Calculation Results

Calculation Formula

Cost to Retail Ratio = (Retail Price - Cost) / Cost

Where:
Cost to Retail Ratio: Indicates how much markup has been applied over the cost
Retail Price: The selling price of the product
Cost: The cost price of the product

Cost to Retail Ratio Calculator Calculator Usage Guide

Learn how to use the Cost to Retail Ratio Calculator calculator and its working principles

How to Use This Calculator

  1. Enter the product cost in the first input field (e.g., $25)
  2. Enter the retail price in the second input field (e.g., $50)
  3. Click the Calculate button to compute the Cost to Retail Ratio
  4. The result will be displayed as a decimal and percentage

Understanding the Results

The Cost to Retail Ratio indicates how much markup has been applied over the cost. For example, if the ratio is 0.25, this means the retail price is 25% above the cost.

Practical Applications

  • Pricing Strategy: Helps determine appropriate retail pricing based on cost
  • Profit Analysis
  • Business Analysis: Compare markup across different products or industries

Example Calculation

If a product costs $25 and is sold for $50:

Cost to Retail Ratio = ($50 - $25) / $25 = 0.25

Percentage = 0.25 × 100 = 25%

This means the product has a 25% markup over its cost.