Wholesale price calculator
Work back from a retail price through retailer and distributor margins to your wholesale price. See your own profit, margin and markup per unit, and whether the retailer price is keystone.
Prices and costs up to 1,000,000,000,000 with up to the selected currency decimal places (0 to 6). Margins from 0 to 99.999999 percent with up to six decimal places. Calculated on your device. Download a JSON report and a CSV summary. Enter the retail price, partner margins and your unit cost in the fields. Up to 1,000,000 characters. Review the settings before running.
Your result
How to use Wholesale price calculator
- Enter the retail price and the retailer margin as a percentage.
- Enter the distributor margin, or 0 if you sell directly to retailers.
- Enter your unit cost, currency and rounding, then calculate.
- Review your wholesale price, margin and markup, then download the report.
Useful next steps
Margins come off the selling price
A 45 percent retailer margin on a 39.99 retail price leaves 21.99 for the retailer to pay, after rounding to cents. A 20 percent distributor margin on 21.99 leaves a wholesale price of 17.59. Margin is a share of the price a partner sells at, as defined in Levy, Weitz and Grewal, Retailing Management, 10th edition (McGraw-Hill, 2019). Markup is profit divided by cost, so a 9.80 cost and a 17.59 wholesale price give a 44.29 percent margin but a 79.49 percent markup.
Rounding and keystone
Each price level is rounded to the currency decimal places with the rounding mode you choose before the next level is calculated, so the report also shows the retailer margin after rounding. Keystone pricing means the retailer sells at twice the price it pays, a 100 percent markup or a 50 percent margin, so the keystone check compares the retail price with the price the retailer pays, not with your wholesale price. In the example the retailer pays 21.99 and twice that is 43.98, above the 39.99 retail price, so it is not keystone. The calculator uses only the margins you enter and does not include freight, payment fees or promotions.