Wholesale Price Calculator
Set wholesale and retail prices from your unit cost and target margins.
What the Wholesale Price Calculator does
Wholesale pricing works backwards from your target margin: divide cost by (1 − margin). The retailer then applies their own margin to your wholesale price, which is why the final retail price is often three to four times the production cost.
Formula
Wholesale price = Unit cost ÷ (1 − Your margin)Retail price = Wholesale price ÷ (1 − Retailer margin)
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Cost per unit | selected currency | Yes | Accepts more than 0. |
| Your wholesale margin | % | Yes | — |
| Retailer margin | % | Optional | The margin the retailer takes. |
| Order quantity | number | Optional | Accepts 1 or more. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Cost per unit and Your wholesale margin.
- Optionally add Retailer margin and Order quantity.
- Select Calculate.
Worked example
A unit costing $12 with a 40% wholesale margin and a 50% retailer margin.
- Cost
- 12
- Wholesale margin
- 40
- Retail margin
- 50
Wholesale $20, retail $40 — a 233% total markup from production cost.
Frequently asked questions
What is keystone pricing?
Doubling the wholesale price to set retail, equivalent to a 50% retail margin. It remains the default in much of retail.
Why divide rather than multiply?
Because margin is measured against the selling price, not cost. Adding 40% to a $12 cost gives $16.80 and only a 28.6% margin — not the 40% you wanted.