Wholesale Pricing Calculator

Set your wholesale price and suggested retail price from your cost and margins, or work back from a retail price, with order value and profit at your minimum order.

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Wholesale pricing in short
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How to use the wholesale pricing calculator

1

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.

2

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.

3

Add the minimum order

Enter your minimum order quantity to see the value and profit of one wholesale order.

4

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 vs retail
WholesaleRetail
Who buysRetailers, shops and distributors who resellCustomers who use the product
Order sizeBulk, often with a minimum order quantityOne or a few units
Price per unitLowerHigher, includes the retailer margin
Who sets the priceSupplier sets wholesale, retailer sets or follows the retail priceRetailer, 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.

Wholesale price for a $12 cost at different margins
Your marginWholesale priceMarkup on costProfit per unit
20%$15.0025.00%$3.00
30%$17.1442.86%$5.14
40%$20.0066.67%$8.00
50%$24.00100.00%$12.00
60%$30.00150.00%$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.

Retail price for a $20 wholesale price at different retailer margins
Retailer marginRetail priceRetailer 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.

Test against the market

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

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.

Divide your cost by one minus the margin you want. A $12 cost and a 40% margin gives $12 ÷ 0.60 = $20.

Divide the wholesale price by one minus the retailer margin. At a 50% retailer margin, a $20 wholesale price becomes $40.

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.

It is a retail price set at double the wholesale price, which gives the retailer a 50% margin.

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.

It is the manufacturer suggested retail price, the price you recommend the retailer sells at. The calculator shows it as the suggested retail price.

It is the smallest order you accept at the wholesale price. A higher minimum makes each order more profitable for you.

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.

Often, because of keystone pricing, but not always. Your costs and the market may justify a different split.

Sources and further reading

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Estimates, not advice

PureCalculate’s calculators give estimates for planning and education. They aren’t financial, tax or legal advice. Fees and tax rules change, so check the official source before making a decision. Spotted a mistake? Please tell us through the contact page.

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