Free tool
Wholesale Pricing Calculator
Check the room a wholesale price leaves on both sides.
A wholesale quote has to make sense for the brand selling the product and the retailer carrying it. This wholesale pricing calculator puts those two views beside each other, using your product cost, wholesale price, retail price and included channel costs.
The retailer’s discount from retail price and the brand’s margin on wholesale revenue use different bases. Keeping them separate makes it easier to see where a quote is tight. Use the Selling Price Calculator for a single-channel target; use this page to examine the relationship between wholesale and retail. The Product Profit & Pricing Calculator provides the wider product-economics context.
One wholesale quote · Two margin bases · Entered channel costs
Current quote
Use a consistent scope and cost basis for every figure.
The example is illustrative. Replace it with your own figures; results update as you type. Your entries stay in this page until you choose to copy them.
Need help finding your figures in Shopify?
Copy an input checklist for Sidekick. Store reports may not contain every cost or scenario assumption; verify the source and mark missing figures rather than guessing.
Target margins
How this tool works
How wholesale economics are calculated
Brand gross profit is wholesale price less product cost. Brand contribution also deducts the wholesale-specific variable costs entered. Retailer gross profit is retail selling price less wholesale buying price; its gross margin divides that spread by retail selling price.
The brand contribution target includes product and wholesale channel costs; the retailer target includes wholesale buying price only. The minimum wholesale price is brand costs divided by one minus its target. The maximum is retail price multiplied by one minus the retailer target. If the minimum exceeds the maximum, no wholesale price meets both targets under the entries supplied. Retailer selling costs and demand remain outside this comparison.
Brand contribution margin = (wholesale price − product cost − wholesale variable costs) ÷ wholesale price. Retailer gross margin = (retail price − wholesale price) ÷ retail price.
A $50 wholesale quote against a $100 retail price
With product cost of $20, a $50 wholesale sale leaves the brand $30 of gross profit and a 60% gross margin. If wholesale variable costs add $5, brand contribution is $25, or 50%. A retailer selling at $100 has a 50% gross margin before its own selling costs.
Your full calculation
| Measure | Result · USD |
|---|---|
| Brand contribution per wholesale unit | $30.0 |
| Brand contribution margin | 42.9% |
| Brand gross profit before channel costs | $35.0 |
| Brand gross margin before channel costs | 50% |
| Retailer gross profit per unit | $50.0 |
| Retailer gross margin | 41.7% |
| Minimum wholesale price for brand target | $66.7 |
| Maximum wholesale price for retailer target | $72.0 |
| Feasible wholesale range widthNon-negative: targets have a common price interval before rounding. | $5.3 |
| Current wholesale price | $70.0 |
| Realized retailer selling price | $120.0 |
| Brand channel cost per unit | $5.0 |
Questions & answers
Understanding your result
How do you calculate a wholesale price?
Begin with the product and channel costs you need to cover, then test a wholesale price against a clearly defined brand margin target. Check the retailer’s margin at the intended retail price as a separate calculation. A workable quote depends on both sides and the actual terms.
Is wholesale price always half the retail price?
No. Pricing wholesale at half the retail price gives the retailer a 50% gross margin if it sells at that retail price. It says nothing about the brand’s product costs or either party’s additional costs.
Is retailer margin the same as brand margin?
No. The retailer compares retail revenue with its wholesale buying cost. The brand compares wholesale revenue with its product and included channel costs. A generous retailer margin can coexist with a tight brand contribution.
How do markdowns affect the wholesale calculation?
A retailer markdown lowers its realized selling price while its buying cost may stay unchanged. Recalculate retailer margin using that lower price. If the brand funds the markdown or accepts returns, include the resulting brand cost on the matching basis.