Wholesale Price Calculator
Build a wholesale and retail price ladder from unit cost, with margin, markup and profit per unit at every tier plus the deepest discount you can offer.
| Price tier | Price | Margin % | Markup on cost % | Profit / unit |
|---|---|---|---|---|
| Your unit cost | $10.00 | — | — | — |
| Wholesale / trade price | $20.00 | 50.0% | 100.0% | $10.00 |
| Retail / MSRP | $40.00 | 75.0% | 300.0% | $30.00 |
Wholesale price is cost ÷ (1 − target margin) — dividing rather than adding, because a 50% margin means the cost is half the price, which is a 100% markup on cost. Margin is profit ÷ price; markup is profit ÷ cost, which is why the two columns differ. Keystone pricing doubles the wholesale price to reach retail, giving the retailer a 50% margin. The lowest promotional price is cost ÷ (1 − floor margin), and the deepest discount is how far that sits below your MSRP. Figures ignore payment-processing fees, returns and freight to the customer — add them to unit cost if you want them covered. Calculated in your browser; nothing is uploaded.
What is the Wholesale Price Calculator?
Setting a wholesale price by adding a percentage to cost is the mistake that quietly destroys margin.
- Wholesale price from cost ÷ (1 − target margin), not a markup shortcut
- Retail tier by keystone multiplier, custom multiplier, target margin or fixed MSRP
- Margin %, markup on cost % and profit per unit at every tier
- Lowest promotional price and deepest discount at your floor margin
- Wholesale shown as a discount off retail for line-sheet work
- Warns when retail would undercut your own wholesale price
How to use the Wholesale Price Calculator
- 1
Enter your landed unit cost — materials, labour, packaging and inbound freight.
- 2
Set the wholesale margin you need on trade sales.
- 3
Choose how retail is set: a multiplier on wholesale, a target retail margin, or a fixed MSRP.
- 4
Set the floor margin you will not go below on a promotion.
- 5
Read the price ladder table and the deepest discount you can offer off retail.
About the Wholesale Price Calculator
Setting a wholesale price by adding a percentage to cost is the mistake that quietly destroys margin. This calculator does it properly: wholesale price is unit cost divided by one minus your target margin, so a 50% margin really is half the price rather than a 50% markup on cost.
From that wholesale price it builds the retail tier too — at the traditional keystone multiplier of 2×, at a custom multiplier, at a target retail margin, or against an MSRP you have already committed to. Every tier shows the price, the margin percentage, the markup on cost and the profit per unit side by side.
It also answers the promotion question: given a floor margin you refuse to go below, how deep a discount off retail can you actually run? All of it is calculated in your browser, so your costs and margins are never uploaded. Estimates only, not financial advice.
Frequently asked questions
What is the difference between margin and markup?
Margin is profit as a share of the selling price; markup is profit as a share of the cost. A product costing 10 and selling at 20 has a 50% margin but a 100% markup. Confusing the two is the most common pricing error, which is why this tool shows both.
How do you calculate a wholesale price from cost?
Divide the cost by one minus the margin you want as a decimal. At a cost of 10 and a 50% target margin, the wholesale price is 10 ÷ 0.5, or 20. Adding 50% to cost would give you 15 and a margin of only 33%.
What is keystone pricing?
Keystone means the retailer doubles the wholesale price to set the shelf price, which gives them a 50% retail margin. It is the traditional default in fashion and gift retail, though many categories now use multipliers between 2.2× and 2.5× to cover markdowns.
How much can I discount before I lose money?
Your floor price is cost ÷ (1 − the lowest margin you will accept). The calculator converts that into a percentage off your retail price, so you can see whether a 40%-off promotion is survivable before you advertise it.
Should payment fees be part of my unit cost?
If you want them covered by the price, yes. Marketplace commission, card processing and outbound shipping are real per-sale costs. Either add them to unit cost here or model them separately with a marketplace fee calculator before you set your final price.
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