Wholesale & B2B Pricing Calculator
Check that a wholesale price works for you and for the retailer who has to resell it.
How the Wholesale & B2B Pricing Calculator Works
A wholesale price has to satisfy two parties. It must leave you a profit after product cost and per-unit overhead, and it must leave the retailer enough room between what they pay and the retail price to make selling your product worthwhile. If either side is too thin, the deal does not last.
Enter your unit cost, packaging and overhead per unit, the wholesale price you plan to offer, the suggested retail price, and your minimum order quantity. The tool shows your profit per unit and wholesale margin, the retailer's margin at MSRP, and the total value and profit of one minimum order. The card is red when you lose money, blue when the margin is thin or the retailer has no room, and green when the deal looks healthy.
Key Formulas Behind This Tool
- Wholesale Profit per Unit: Wholesale Price - Unit COGS - Packaging and Overhead per Unit
- Wholesale Margin (%): (Wholesale Profit per Unit / Wholesale Price) x 100
- Retailer Margin (%): ((MSRP - Wholesale Price) / MSRP) x 100
- MSRP to Wholesale Ratio: MSRP / Wholesale Price (2.00x is keystone pricing)
- MOQ Order Value: Wholesale Price x MOQ
- Total MOQ Order Profit: Wholesale Profit per Unit x MOQ
Frequently Asked Questions (FAQ)
What is a good wholesale margin?
It depends on your category and volume, but many brands aim for a wholesale margin of roughly 30% to 50% or more. Because wholesale orders skip most marketing and ad costs, a lower margin than your online margin can still be profitable if volume is high.
What margin do retailers expect?
Many retailers expect to price at about double the wholesale price, which is called keystone pricing and gives them a 50% margin on the retail price. Some categories use lower or higher expectations, so check what your buyers want.
What should I include in packaging and overhead per unit?
Include cartons, labels, pallet or case packing, wholesale shipping you pay, and any per-unit allocation of order processing or payment terms. Anything you pay for each unit beyond product cost belongs here.
What is the difference between wholesale margin and retailer margin?
Wholesale margin is your profit as a share of the wholesale price. Retailer margin is the retailer's profit as a share of the MSRP, based on the wholesale price they pay you. Both must be healthy for the deal to work.
Why does the MOQ matter?
The minimum order quantity sets the size of each wholesale order, so it sets the total profit you earn per order. A low margin can still be worth it on a large MOQ, while a high margin on a tiny MOQ may not cover your handling time.