Calculate the recommended retail price needed to achieve your target margin across retail, wholesale and distributor channels. All calculations are completed securely in your browser and are not sent to our servers.
Explore free calculators, templates and practical tools built to help food businesses understand pricing, profitability, forecasting and day-to-day operations.
An RRP calculator works out the selling price required to achieve a desired gross margin based on the cost of producing or purchasing a product.
RRP stands for recommended retail price. It is the price recommended for sale to the final customer, although retailers may ultimately choose their own selling price.
Enter the product cost, select the relevant sales channels and enter the margin required at each stage. The calculator works forward through the channel structure to calculate the selling prices needed to maintain those margins.
RRP is calculated by dividing the product cost by one minus the desired margin percentage. For example, a product costing $10 with a target margin of 40% requires a selling price of approximately $16.67 before any relevant taxes.
Yes. The calculator can work through retail, wholesale and distributor channels so each business in the supply chain can apply its required margin before the final retail price is calculated.
Each additional business in the supply chain generally needs to earn a margin. Adding distributor and wholesale channels means the final retail price must allow each stage to buy and resell the product profitably.
Margin measures profit as a percentage of the selling price, while markup measures profit as a percentage of the cost. A 50% markup does not produce a 50% margin, which is a small mathematical trap responsible for a surprising amount of human disappointment.
The result depends on the values entered. Use GST-exclusive values throughout when calculating commercial margins, then add GST to the final retail price where required. Alternatively, use GST-inclusive values consistently without mixing the two approaches.
The product cost should include the expenses relevant to producing or sourcing one saleable unit. This may include ingredients, packaging, direct production labour, inbound freight, duties and other landed costs.
Direct product costs should generally be included. Broader operating expenses such as rent, administration and marketing may instead be assessed through a wider profitability calculation, unless they are intentionally allocated into the product cost.
No. The calculator shows the price required to achieve the entered gross margin, but overall profitability also depends on sales volume, discounts, waste, overheads, promotions, commissions and other operating expenses.
Yes. Change the product cost, channel structure or target margins to compare different pricing scenarios before setting wholesale, distributor or retail prices.
The calculator is designed for food and beverage manufacturers, brands, wholesalers, distributors and retailers that need to establish pricing across one or more sales channels.
No. Calculations are completed locally within your browser, and the values entered into the calculator are not sent to Supply'd servers.
Yes. Supply'd ERP connects product costs, supplier pricing, production costs, customer pricing and sales information to support ongoing pricing and margin management across products and sales channels.
