Wholesale Pricing Calculator
This wholesale pricing calculator converts your retail price and wholesale discount into the price you charge stockists — and checks that you still make money at it. Enter the retail price, the wholesale discount you offer, and your unit cost to see your per-unit profit, your wholesale margin, and the margin the retailer earns. Price wholesale with confidence instead of guessing a discount.
The price the end customer pays at retail.
Percentage off retail you give the stockist. 50% is the traditional wholesale norm.
What one unit costs you to make or buy.
Wholesale price
60
- Wholesale discount amount
- 40
- Your profit per wholesale unit
- 30
- Your margin on wholesaleYour profit as a % of the wholesale price.
- 50%
- Retailer marginWhat the stockist earns selling at full retail.
- 40%
How it was calculated
- Wholesale price: $100.00 × 0.60 = $60.00.
- Your profit: $60.00 − $30.00 cost = $30.00 (50.0% margin).
- Retailer margin: $40.00 ÷ $100.00 = 40.0%.
How it works
Wholesale price = retail price × (1 − wholesale discount). A 40% discount on $100 retail gives a $60 wholesale price.
Your profit per unit = wholesale price − your unit cost; your wholesale margin divides that profit by the wholesale price.
Retailer margin = (retail − wholesale) ÷ retail × 100 — the stockist's incentive to carry your product, conventionally 40–50%.
Both margins come from the same discount: raising it helps the retailer but squeezes you, so the calculator shows both sides at once.
Worked examples
$100 retail, 40% wholesale discount, $30 cost
Wholesale price = $60. Your profit = $30 per unit — a 50% margin on the wholesale price. The retailer earns $40, a 40% margin at full retail. Both sides win.
$80 retail, 50% discount, $25 cost
Wholesale price = $40. Your profit = $15 (37.5% margin). The retailer gets a full 50% margin. Tighter for you, attractive for the stockist — typical of competitive categories.
How to measure
- Set the retail price first from real market data, then derive wholesale — never the other way round.
- Know your category norm: 50% off retail is traditional in many wholesale lines; boutiques may accept 40%.
- Include freight to the stockist in your unit cost before judging the wholesale margin.
- Get the discount in writing with MAP (minimum advertised price) terms so retail pricing holds.
- Re-run the numbers at your actual order quantities — wholesale only works if volume compensates for the thinner margin.
Assumptions & limitations
Planning estimate
- A single flat discount is modeled; tiered volume breaks and payment terms (e.g. net-30) are not included.
- Retailer margin assumes the stockist sells at full MSRP — their discounting reduces it.
- Shipping, duties and chargebacks on wholesale orders are excluded.
- This is a pricing planning estimate, not financial advice.
Frequently asked questions
Multiply the retail price by (1 − wholesale discount). At $100 retail with a 40% discount, the wholesale price is $60. Then subtract your unit cost to check your own profit — $60 − $30 cost = $30 profit per unit.
50% off retail ("keystone") is the long-standing norm in many categories, giving the retailer a 50% margin. Some niches work at 40%; below 30% most stockists will pass. Your discount must leave you a profit after your own costs.
Aim for at least 25–35% margin on the wholesale price after your fully-loaded unit cost. Wholesale margins are thinner than direct-to-consumer by design — the tradeoff is volume and no per-order marketing cost.
Decide explicitly and state it in terms: either build freight into the wholesale price or charge it separately. Many sellers offer free freight above a minimum order value to encourage larger wholesale orders.
Minimum Advertised Price: the lowest price stockists may advertise your product at. It protects your retail price (and every stockist's margin) from race-to-the-bottom discounting. Put it in your wholesale agreement.