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Wholesale price formula
For a target gross margin, divide unit cost by one minus the margin rate. A $28 cost at a 50% wholesale margin produces a $56 wholesale price.
CalculatorsFREE · NO SIGNUP
Wholesale Price Calculator
Turn unit cost and target margins into a wholesale price, retailer selling price, and dollar profit at each step.
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01 USE IT NOW02 NO ACCOUNT03 FIELD NOTES BELOW
WORKING INPUTS
Build the scenario.
LIVE RESULT
Wholesale price
$56.00Suggested retail price: $112.00 at 100% retailer markup.UNIT COST$28.00
WHOLESALE PROFIT$28.00
SUGGESTED RETAIL$112.00
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ROOM FOR BOTH BUSINESSES
Price the product for the full route to retail.
A durable wholesale price protects the maker’s margin while leaving a clear, realistic path to the retailer’s shelf price.
WORKING VIEW
$56 → $112EXAMPLE PRICE PATH
METHODcost ÷ (1 − wholesale margin)
WORKING NOTE$28 cost · $28 wholesale profit · 100% retailer markup
INPUTS → CLEAR OUTPUT
THE FIELD NOTES
Quick answer above. Better decisions below.
Use the result now, then read the practical notes for assumptions, examples, limitations, and the choices behind it.
EXAMPLE PRICE PATH$56 → $112
$28 cost · $28 wholesale profit · 100% retailer markup
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Margin vs markup
Margin measures profit as a share of the selling price. Markup measures the increase as a share of cost. The two percentages are not interchangeable.
03
Costs to include before setting wholesale
Unit cost should reflect the direct product cost relevant to the decision. Packaging, inbound freight, duties, quality control, and per-unit fulfillment may need to be included.
04
Sense-check the suggested retail price
Compare the calculated retail price with customer value, competing products, and the retailer’s category expectations. The formula protects a target margin; it cannot prove the market will accept the price.
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Wholesale price formula
For a target gross margin, divide unit cost by one minus the margin rate. A $28 cost at a 50% wholesale margin produces a $56 wholesale price.
This is margin, not markup. A 50% markup on $28 would be $42, which creates only a 33.3% margin on the selling price.
Margin vs markup
Margin measures profit as a share of the selling price. Markup measures the increase as a share of cost. The two percentages are not interchangeable.
The retailer field uses markup because keystone pricing is commonly described as a 100% markup from wholesale to retail. Adjust it to match the real channel agreement.
Costs to include before setting wholesale
Unit cost should reflect the direct product cost relevant to the decision. Packaging, inbound freight, duties, quality control, and per-unit fulfillment may need to be included.
The result excludes overhead, sales commissions, payment terms, returns, discounts, minimum orders, and taxes unless you have already incorporated them into cost.
Sense-check the suggested retail price
Compare the calculated retail price with customer value, competing products, and the retailer’s category expectations. The formula protects a target margin; it cannot prove the market will accept the price.
Run scenarios before negotiating. A smaller wholesale margin, different retailer markup, or lower unit cost changes who absorbs the pressure.
Questions, answered.
How do I calculate wholesale price from margin?
Divide unit cost by one minus the target wholesale margin expressed as a decimal. A 50% margin means dividing cost by 0.5.
What is keystone pricing?
Keystone pricing usually means a retailer doubles the wholesale price, which is a 100% markup and a 50% gross margin before other costs.
Does this include taxes and shipping?
No. Add any relevant landed, packaging, freight, tax, commission, or fulfillment cost to the unit-cost assumption before relying on the result.
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