Ecommerce Wholesale Pricing Calculator
Calculate a wholesale price that protects your margin while leaving enough room for the retailer to earn their target margin.
Wholesale price limits
Recommended price economics
Find a wholesale price that works for both your brand and the retailer
Use this calculator when you know your retail price and unit cost and need to see whether there is enough margin for both sides of a wholesale relationship.
Your business needs a minimum wholesale price to cover product and wholesale-specific costs while earning the gross margin you want.
The retailer has a maximum wholesale price they can pay if they are also expected to earn a target margin at the suggested retail price.
If your minimum wholesale price is higher than the maximum price the retailer can support, the current retail price, cost structure, or margin expectations need to change.
How the wholesale price is calculated
The calculator compares your minimum sustainable price with the retailer's maximum sustainable buying price.
Calculate your total unit cost
Product cost and any wholesale packaging, fulfillment, shipping subsidy, or other wholesale-specific costs are combined.
Calculate your minimum wholesale price
The calculator finds the price required for your total unit cost to achieve your target wholesale gross margin.
Calculate the retailer's maximum buy price
Retailer target margin is applied to the suggested retail price to find the highest wholesale price they can pay.
Compare the two limits
The pricing gap shows whether both margin targets can fit inside the same retail price.
Example wholesale pricing calculation
Suppose a product is expected to retail for $50:
Your total unit cost is $14.00, so a 40% wholesale gross margin requires a minimum wholesale price of about $23.33. A retailer targeting a 50% margin at a $50 retail price can pay up to $25.00. The pricing gap is therefore about $1.67, so both targets can fit.
What each result means
Wholesale pricing is sustainable only when the brand and retailer price limits overlap.
Minimum price for your target margin
The lowest wholesale price your business can accept while still earning the selected gross margin on the entered unit cost.
Maximum price for retailer target margin
The highest wholesale price the retailer can pay while still preserving their target gross margin at the suggested retail price.
Wholesale pricing gap
The difference between the retailer's maximum buy price and your minimum sustainable wholesale price. A positive gap means both targets can fit.
Recommended wholesale price
When the pricing gap is positive, the calculator uses your minimum target-margin price. When the gap is negative, it shows the retailer's maximum sustainable price so the shortfall is visible.
Wholesale discount from retail price
The percentage difference between the suggested retail price and the recommended wholesale price.
Wholesale pricing questions
Common questions when balancing brand margin with retailer economics.
Is wholesale margin the same as wholesale discount?
No. Wholesale margin compares your profit with the wholesale selling price. Wholesale discount compares the wholesale price with the suggested retail price.
What if the pricing gap is negative?
The current assumptions do not support both margin targets. You may need a higher retail price, lower unit cost, lower brand margin target, lower retailer margin target, or a different wholesale structure.
Should freight to the retailer be included?
Include the portion your business pays if it is a variable cost of the wholesale sale. If the retailer pays freight separately, do not include that cost here.
Should I always use the minimum wholesale price as my quote?
Not necessarily. The minimum price is your economic floor for the selected margin. Negotiation, order volume, payment terms, exclusivity, and retailer value can justify a higher price.
Can I use this for distributor pricing?
Yes for a simple one-step margin model, but multi-layer distribution often requires separate margins for distributor and retailer, which would need a more detailed calculation.