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Wholesale Price Calculator
Helps set B2B pricing by calculating the selling price needed to maintain a specific profit margin.
How to Calculate Wholesale Price Calculator
The formula to calculate this metric is straightforward.
Wholesale Price = Manufacturing Cost / (1 - Desired Margin / 100)
A Real-World Example
Scenario: Manufacturing cost = $15, Desired margin = 40%
Wholesale Price: $15 / (1 - 0.40) = $15 / 0.60 = $25.00
Profit per Unit: $25 - $15 = $10
Why Wholesale Price Calculator Matters for Your Business
- Ensures B2B pricing covers costs while leaving room for retailer margins.
- Prevents under-pricing that erodes profitability in wholesale channels.
- Creates a consistent pricing framework for volume buyers and distributors.
Frequently Asked Questions
What is the difference between wholesale and retail price?
Wholesale is the price you charge to businesses who resell your product. Retail is the price those businesses charge to end consumers.
What is a standard wholesale discount?
Most industries use a 40-60% margin from wholesale to retail. A product costing $25 wholesale would retail around $50-60.
Should I offer tiered wholesale pricing?
Yes. Offering better prices for larger order volumes incentivizes bigger purchases and builds stronger B2B relationships.