Wholesale Price Calculator
Calculate the ideal wholesale price for your products by factoring in cost, overhead, and your target profit margin.
Your Inputs
Enter your cost structure and desired profit margin below.
Results
Enter your inputs and click Calculate to see results.
Results will appear here after you calculate.
What is Wholesale Pricing?
Wholesale pricing is the price at which goods are sold in bulk to retailers or distributors rather than directly to end consumers. Setting the right wholesale price ensures you cover all production and operational costs while earning a healthy profit margin — and still leaving room for your retail partners to mark up the product.
Wholesale vs Retail Price
The wholesale price is what a retailer pays you; the retail price is what the end consumer pays the retailer. A common rule of thumb is that the retail price is roughly 2x the wholesale price, though this varies by industry. Your wholesale price must be high enough to cover your costs and profit, yet low enough that retailers can apply their markup and still offer a competitive retail price.
The Wholesale Price Formula
The formula is Wholesale Price = Total Cost Price / (1 - Profit Margin / 100), where Total Cost Price includes not just the unit manufacturing cost, but also your share of overhead and administrative expenses spread across the number of units produced.
- Cost Price per Unit — The direct cost of manufacturing or acquiring one unit, including raw materials and direct labor.
- Overhead Expenses — Indirect costs like rent, utilities, and equipment depreciation that are allocated across all units.
- Administrative Cost — General business expenses such as office supplies, accounting, and management salaries.
- Profit Margin — The percentage of the wholesale price that represents your profit, expressed as a percentage.
How Nventory Helps
Nventory tracks your landed costs, overhead allocation, and per-unit economics in real time. When you add a new product or adjust your cost structure, Nventory can instantly recalculate your wholesale and suggested retail prices — ensuring your margins stay on target even as input costs fluctuate. With multi-channel pricing tools, you can manage wholesale and retail price lists from a single dashboard.
Want automated pricing and cost tracking for your wholesale business?
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Contact SupportWholesale pricing is the price at which goods are sold in bulk to retailers or distributors rather than directly to end consumers. Wholesale prices are lower than retail prices because the wholesaler sells in larger quantities and the retailer adds their own markup. The difference between wholesale and retail price funds the retailer's operations and profit.
Wholesale price is what a retailer pays to purchase goods from a manufacturer or distributor. Retail price is what the end consumer pays to buy from the retailer. The retail price is typically 2 to 2.5 times the wholesale price, though this markup varies by industry and product category.
Add your cost per unit, allocated overhead per unit, and administrative costs per unit to get the total cost per unit. Then add your desired profit margin: Wholesale Price = Total Cost per Unit / (1 - Profit Margin Percentage). For example, a $10 total cost with a 30% margin yields a wholesale price of $14.29.
Wholesale profit margins typically range from 15% to 50% depending on the industry, product type, and competition. Consumer packaged goods often have margins of 20% to 30%. Higher margins are possible for specialized or proprietary products with less competition. Your margin must cover costs and provide enough profit to sustain the business.
Calculate your total monthly or annual overhead costs including rent, utilities, equipment, software, and non-production salaries. Divide this total by the number of units you produce or sell in the same period to get overhead cost per unit. Add this per-unit overhead to your direct cost per unit when calculating wholesale price.
Keystone pricing is a retail pricing method where the retail price is set at exactly double the wholesale cost. For example, if a retailer buys a product at $25 wholesale, they sell it at $50 retail. While simple to apply, keystone pricing may result in prices that are too high for competitive markets or too low for premium products.
Set minimum order quantities (MOQs) based on your production batch sizes, shipping efficiency, and the minimum order value that makes fulfillment profitable. Calculate the order size at which your per-unit fulfillment cost becomes acceptable. Communicate MOQs clearly in your wholesale terms and consider offering tiered pricing for larger orders.
Volume discounts incentivize larger orders, which reduce your per-order fulfillment costs and improve cash flow predictability. Structure discounts in tiers so that each step up provides meaningful savings for the buyer while maintaining your minimum margin. Ensure your lowest discounted price still covers total costs plus an acceptable profit margin.
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