Wholesale Price Calculator
Selling through shops means one product needs three numbers that fit together: what it costs you, what the shop pays, and what the customer pays. Enter your cost and the markup you add to get a wholesale price, then the markup a shop adds to see the retail price it leads to. If the retail price is already set by the market, the second tool on this page works backwards from it. For pricing a product you only sell direct, the markup calculator is simpler. Once the numbers work, the guide on getting your products into shops covers who to approach and what to send.
When to use this calculator
Use this before you send a line sheet or answer a shop's first enquiry, when a stockist asks for a bigger margin, or when you are deciding whether a product you already sell direct can support a wholesale price at all.
Wholesale markup is what you add to your cost. Retail markup is what the shop adds to the wholesale price — 100% means they double it.
Wholesale Price
Suggested Retail Price
Your Profit per Unit
Results are instant — nothing is stored and no account is needed.
Work Back from a Retail Price
Often the retail price comes first: similar products sell for about $30, so yours has to as well. Enter that price and the share of it the shop expects to keep, and you get the wholesale price they will pay. Add your cost to see whether what is left is worth it. Copy the link to send the numbers to a stockist or a business partner.
Wholesale Price
Your Profit per Unit
Related Calculators
How to Calculate
- Work out your cost per unit, including materials, packaging and your time.
- Multiply the cost by (1 + your wholesale markup ÷ 100) to get the wholesale price.
- Multiply the wholesale price by (1 + the shop's markup ÷ 100) to get the retail price.
- Going the other way, multiply the retail price by (1 − the shop's margin ÷ 100) to get the wholesale price.
- Subtract your cost from the wholesale price to see what you keep on each unit.
Formula
From cost: $7.50 with a 100% markup wholesales at $15. From retail: a $30 price where the shop keeps 50% also gives $15. When both routes land on the same number, the product works for wholesale.
Examples
Cost $7.50, 100% then 100%
$15 wholesale — $30 retail
Cost $4, 150% then 100%
$10 wholesale — $20 retail
Retail $48, shop keeps 50%
$24 wholesale
Use Cases
- Building a wholesale price list or line sheet
- Checking whether a product can be sold through shops at all
- Answering a stockist who asks for a 55% or 60% margin
- Setting a suggested retail price that matches your own website
- Pricing a new product so it works both direct and wholesale
FAQ
Is the wholesale price always half the retail price?
Half is the usual starting point, because many independent shops expect to keep about 50% of the retail price. It is not a rule. Some shops and larger chains ask for more, and low-priced or fast-selling goods are often sold on less. Ask a buyer what margin they work to before you quote.
How do I calculate the wholesale price from a retail price?
Multiply the retail price by one minus the shop's margin. For a $48 retail price and a 50% margin: $48 × 0.50 = $24 wholesale. At a 55% margin the same item wholesales at $48 × 0.45 = $21.60.
What if my cost is too high to double twice?
Doubling twice only works when your cost is about a quarter of the retail price. If an item costs you $12 and the market will pay $30, a shop keeping 50% pays $15 and you keep $3, a 25% markup. Your options are to cut the cost, raise the retail price, offer that product direct only, or agree a smaller margin with the shop.
Should I sell cheaper on my own website than shops do?
No. Keep your own price at the suggested retail price. Undercutting the shops that stock you gives them a reason to drop the line, and the extra you earn selling direct at full price is what pays for your own marketing and shipping.
What is the difference between cost price and wholesale price?
Cost price is what a unit costs you to make or buy. Wholesale price is what you charge a shop for it, so it already includes your profit. The shop then adds its own markup to reach the retail price.
Is a 50% shop margin the same as a 50% markup?
No. A shop that keeps 50% of the retail price has doubled what it paid, which is a 100% markup. A 50% markup on a $15 wholesale price gives $22.50, where the shop keeps only 33.33%. Buyers usually talk in margin, so check which one is meant; the markup vs margin guide has a conversion table.
Advanced Scenarios
Volume discounts for bigger orders
Offering 10% off orders over 50 units turns a $15 wholesale price into $13.50. With a $7.50 cost, your profit per unit falls from $7.50 to $6.00, a 20% drop for a 10% discount. Make sure the larger order really does make up the difference, and test tiers with the discount calculator first.
Selling through a distributor
A distributor sits between you and the shop and takes a share too. On a $30 retail price, the shop pays $15. If the distributor keeps 25% of that, they pay you $11.25. Against a $7.50 cost you keep $3.75, a 50% markup instead of 100%. Three-step chains need a lower cost or a higher retail price.
Minimum orders and the cost of a small sale
Packing and invoicing a wholesale order costs about the same whether it holds 6 units or 60. If each order takes $20 of your time and postage, a 6-unit order at $7.50 profit per unit earns $45 and nets $25. A minimum order of 24 units earns $180 and nets $160. The break-even calculator helps you find a sensible minimum.
Tax on wholesale prices
Wholesale prices are normally quoted before sales tax or VAT, and the retail price a customer sees may include it. Compare like with like: take the tax off the shelf price before working back to wholesale, or you will overstate what the shop can pay.
Retail to Wholesale Price Table
What a shop pays at three common margins. To check what each wholesale price leaves you, use the profit margin calculator.
| Retail price | Shop keeps 40% | Shop keeps 50% | Shop keeps 55% |
|---|---|---|---|
| $10 | $6.00 | $5.00 | $4.50 |
| $20 | $12.00 | $10.00 | $9.00 |
| $25 | $15.00 | $12.50 | $11.25 |
| $40 | $24.00 | $20.00 | $18.00 |
| $50 | $30.00 | $25.00 | $22.50 |
| $100 | $60.00 | $50.00 | $45.00 |