Enter the total cost of the product and the desired profit per item into the calculator to determine the wholesale price.

## Wholesale Price Formula

The following formula is used to calculate a wholesale price:

WP = TC + DP

- Where WP is teh wholesale price ($)
- TC is the total cost to produce to good ($)
- DP is the desired profit per unit sold ($)

The wholesale price can also be calculated with the following:

WP = RRP / 2

- Where WP is the wholesale price ($)
- RRP is the recommended retail price ($)

In this case, the retail margin would be 50%, but this could change depending on the retailer.

## Wholesale Price Definition

A wholesale price is the amount a product is bought for by a retailer, typically in large amounts. The wholesale price is given to those that purchase enough product to be considered for the wholesale amount.

There is no set amount a product should be sold for wholesale, but an often recommended level is 50% less than the retail price.

## Example Problem

How to calculate a wholesale price?

**First, determine your total cost of production per unit.**This includes raw material and overhead costs, along with anything else that goes into producing the good. In this case, the total cost is $100.00

**Next, determine the desired profit margin amount.**This is the amount a wholesaler wishes to make per item when selling to a retailer at wholesale price. In this example, the profit margin is $30.00.

**Finally, calculate the wholesale price.**Using the formula above, the wholesale price is determined to be:

WP = TC + DP

WP = 100 + 30

WP = $130.00.