Pricing math

Wholesale Price Calculator

What retailers pay you, and what is actually left per unit after they take their cut of your retail price.

Wholesale price = retail price × (1 − wholesale discount%). Retail buyers typically take 50% off the retail price, so a product that retails at $60 wholesales for $30. If the unit costs you $18 to make and land, each wholesale unit earns $12 — a 40% margin on the wholesale price, versus 70% selling direct. Wholesale trades margin for volume and zero acquisition cost. Enter your retail price, the discount your buyer expects, and your unit cost to see whether the trade works.

Wholesale Price Calculator — your numbers

Wholesale price

$30.00

Wholesale margin

40.0%

Profit per unit

$12.00

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

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Worked examples

Standard 50% wholesale

Retail price (MSRP) $60.00
Wholesale discount 50%
Unit cost $18.00
Wholesale price $30.00
Wholesale margin 40.0%
Profit per unit $12.00

The classic split: $30 to you, $12 profit per unit at a 40% margin.

Distributor asking 60%

Retail price (MSRP) $60.00
Wholesale discount 60%
Unit cost $18.00
Wholesale price $24.00
Wholesale margin 25.0%
Profit per unit $6.00

Ten more points of discount cuts your profit per unit in half — $12 to $6.

Frequently asked questions

What is the standard wholesale discount?

Independent retailers typically expect 50% off retail. Distributors, who sell on to retailers, ask 55–65% because they need room for their own margin. Large chains and department stores negotiate case by case and often add chargebacks, freight requirements, and payment terms that function as extra discount. Always price your retail high enough to survive the deepest tier you plan to sell.

Is wholesale worth it at half the margin of direct sales?

Often yes, because the costs differ too. Direct sales carry advertising, payment fees, pick-and-pack, and customer service; a wholesale order ships one pallet to one address with no ad spend. If your direct channel spends 25% of revenue on acquisition, a 40% wholesale margin with near-zero selling cost can net more per unit than it appears.

How should I set my retail price if I plan to wholesale?

Work backwards from the wholesale math, not forwards from direct-to-consumer pricing. A common rule: wholesale price should be at least 2× your landed unit cost, which means retail should be at least 4× cost if buyers take 50%. Setting retail too low early is hard to undo — raising MSRP after retailers stock you creates channel conflict.

Should I offer volume discounts on top of the wholesale price?

Only in defined tiers you have already priced for. A small break at meaningful case quantities (for example 5% off at 10+ cases) is normal; ad-hoc discounts under buyer pressure are how wholesale programs go underwater. Run this calculator at your deepest tier first — if the profit per unit still clears your floor there, the tiers above it are safe.

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Part of the Pricing & Margins collection.