What this calculator tells you

Wholesale pricing has to work for both sides of the relationship. A supplier needs enough margin to cover operations, while the retailer needs a credible retail price after its own costs.

Gross margin = (wholesale price - unit cost) / wholesale price x 100. Markup = (wholesale price - unit cost) / unit cost x 100. Minimum retail price = wholesale price / (1 - target retail margin rate).

When to use it

Use it when quoting a wholesale account, comparing a direct-to-consumer price with a trade price, or checking whether a target retail margin leaves enough room.

Use conservative inputs

Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.

Watch the common mistake

A wholesale markup is not a wholesale margin. A 50 percent markup on cost produces a 33.3 percent margin on the selling price.

Frequently asked questions

Should freight be included in unit cost?

Yes. Use landed unit cost including inbound freight, duties, and packaging so the margin reflects the full cost to deliver.

What does minimum retail price mean here?

It is the price a retailer would need to charge to earn the entered margin after paying your wholesale price. It is a planning reference, not a required retail price.

Does volume discounting belong in this calculator?

Run a separate scenario for each volume tier. A larger order may reduce freight per unit but should not be assumed to improve margin without checking the full quote.

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