Estimate a wholesale price from unit cost, overhead, margin, or markup, then compare supplier profit, retailer margin, MSRP, and order totals.

Wholesale Price Formula

The following formula is used to calculate a wholesale price:

WP = TC + DP

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

To calculate a wholesale price, add unit cost and desired unit profit. In the calculator, choose margin for W = C ÷ (1 − margin/100), or markup for W = C × (1 + markup/100). Optional overhead is added to direct cost. USD quoted prices round half-up to cents; achieved margins and order totals use those quoted prices.

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.

Wholesale prices depend on costs, market conditions and the channel agreement. Half the retail price is the keystone convention, corresponding to a 50% retailer margin; it is not a universal recommendation.

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 amount.
This is the amount a wholesaler wishes to make per item when selling to a retailer at wholesale price. In this example, the desired unit profit is $30.00 (a 30% markup on $100 cost).
Finally, calculate the wholesale price.
Choose markup on cost and enter cost $100 and markup 30%. The wholesale price is:
WP = TC + DP
WP = 100 + 30
WP = $130.00.