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- Wholesale price = cost ÷ (1 − your margin). Retail price = wholesale price ÷ (1 − retailer margin).
- A $12 product with a 40% margin sells wholesale at $20. With a 50% retailer margin, the shelf price is $40.
- A 50% retailer margin is called keystone pricing, where the retail price is double the wholesale price.
- You can also start from a retail price and work back to the wholesale price and the highest cost you can pay.
How to use the wholesale pricing calculator
Choose where to start
Pick My cost to price from what a unit costs you, or Retail price to work back from the shelf price.
Enter your margins
Add the margin you want on the wholesale price and the margin the retailer expects on the retail price. 50% is the usual retailer starting point.
Add the minimum order
Enter your minimum order quantity to see the value and profit of one wholesale order.
Add shipping if you pay it
Open the advanced section if you pay to ship to the retailer, so your margin is not eaten by it.
What is a wholesale price?
A wholesale price is the price a supplier charges retailers and distributors who buy in bulk to resell. It is lower than the retail price, because the retailer needs room to cover its own costs and make a profit. The retail price is what the customer pays in the shop.
| Wholesale | Retail | |
|---|---|---|
| Who buys | Retailers, shops and distributors who resell | Customers who use the product |
| Order size | Bulk, often with a minimum order quantity | One or a few units |
| Price per unit | Lower | Higher, includes the retailer margin |
| Who sets the price | Supplier sets wholesale, retailer sets or follows the retail price | Retailer, often guided by an MSRP |
Wholesale price formula
Wholesale pricing formulas
Wholesale price = (cost + shipping) ÷ (1 − your margin)
Retail price = wholesale price ÷ (1 − retailer margin)
Your profit per unit = wholesale price − cost
Wholesale price from retail = retail price × (1 − retailer margin)
Highest cost = wholesale price × (1 − your margin)
Order value = wholesale price × minimum order
Margin is measured against the selling price, so divide by one minus the margin. Adding a percentage to your cost gives a markup, which leaves you with a lower margin.
Wholesale pricing examples
Example 1: price from cost
A product costs you $12. You want a 40% margin, the retailer wants 50%, and your minimum order is 50 units.
- Wholesale price $12 ÷ 0.60 = $20.00
- Suggested retail price $20 ÷ 0.50 = $40.00
- Your profit per unit $8.00
- Order value and profit at 50 units $1,000 and $400
The retail price is 3.33 times your cost, which is typical for products sold through shops.
Example 2: include shipping
A product costs $5 and you pay $1 per unit to ship it. You want a 50% margin, the retailer wants 50%, and the minimum order is 100 units.
- Cost with shipping $6.00
- Wholesale price $6 ÷ 0.50 = $12.00
- Suggested retail price $12 ÷ 0.50 = $24.00
- Order value and profit at 100 units $1,200 and $600
Adding shipping to your cost first keeps the margin accurate.
Example 3: start from the retail price
A shop will sell your product at $50 with a 50% retailer margin, and you want a 40% margin.
- Wholesale price $50 × 0.50 = $25.00
- Highest cost you can pay $25 × 0.60 = $15.00
- Highest cost with $1 shipping $14.00
If your cost is higher than that, raise the retail price or accept a lower margin.
Wholesale price at different margins
A higher margin protects you against returns and slow payment, but it raises the price the retailer has to charge. The table shows a product that costs $12.
| Your margin | Wholesale price | Markup on cost | Profit per unit |
|---|---|---|---|
| 20% | $15.00 | 25.00% | $3.00 |
| 30% | $17.14 | 42.86% | $5.14 |
| 40% | $20.00 | 66.67% | $8.00 |
| 50% | $24.00 | 100.00% | $12.00 |
| 60% | $30.00 | 150.00% | $18.00 |
Retail price and the retailer margin
The retailer margin sets the shelf price. A lower margin gives a lower retail price, but many retailers need around 40% to 50% to cover rent, staff and unsold stock, so a very low margin can be hard to place in shops.
| Retailer margin | Retail price | Retailer profit per unit |
|---|---|---|
| 30% | $28.57 | $8.57 |
| 40% | $33.33 | $13.33 |
| 50% (keystone) | $40.00 | $20.00 |
| 60% | $50.00 | $30.00 |
Wholesale pricing and markup
Margin and markup are not the same. A 40% margin is a 66.7% markup. To convert between them, or to price from a markup, use the markup calculator, and see the profit margin calculator for gross and net margin. Check how many units cover your fixed costs with the break-even calculator. To compare with selling directly, see the Etsy profit calculator, the TikTok Shop profit calculator and the Amazon FBA profit calculator.
Where a wholesale pricing calculator helps
Price for shops
Set a wholesale price that leaves you a real margin.
Suggest an MSRP
See the retail price a shop would charge.
Work backward
Find the highest cost that fits a retail price.
Size an order
See the value and profit of your minimum order.
A calculated retail price only works if shoppers will pay it. Compare it with similar products, and adjust your margin, cost or minimum order if it is too high. Discounts, payment terms and returns are not included.
Wholesale pricing calculator FAQ
What is a wholesale price?
It is the price a supplier charges retailers and distributors who buy in bulk to resell. It is lower than the retail price the customer pays.
How do you calculate a wholesale price?
Divide your cost by one minus the margin you want. A $12 cost and a 40% margin gives $12 ÷ 0.60 = $20.
How do you calculate retail price from wholesale?
Divide the wholesale price by one minus the retailer margin. At a 50% retailer margin, a $20 wholesale price becomes $40.
What is the difference between wholesale and retail?
Wholesale is selling in bulk to retailers at a lower price per unit. Retail is selling to the end customer, usually one or a few units at a higher price.
What is keystone pricing?
It is a retail price set at double the wholesale price, which gives the retailer a 50% margin.
What margin do retailers expect?
Many retailers expect around 50% of the retail price, but it varies by product and shop. A much lower margin can be hard to place.
What is MSRP?
It is the manufacturer suggested retail price, the price you recommend the retailer sells at. The calculator shows it as the suggested retail price.
What is a minimum order quantity?
It is the smallest order you accept at the wholesale price. A higher minimum makes each order more profitable for you.
Should I include shipping in the wholesale price?
If you pay to ship to the retailer, add it to your cost so your margin is not eaten by it. Otherwise, list shipping separately.
Is wholesale half of retail?
Often, because of keystone pricing, but not always. Your costs and the market may justify a different split.