Wholesale Price Calculator: Cost, Markup and Profit in One Step

A wholesale price calculator applies your markup on top of your product cost, so you can see the price, the profit per unit and the resulting margin before you quote a buyer.

How to calculate wholesale price

Wholesale price is your product cost plus a markup on top of that cost. Multiply the cost by one plus the markup expressed as a decimal. A 10 dollar cost with a 40 percent markup becomes 10 times 1.4, which is 14 dollars. Subtract the original cost and the 4 dollars left over is your profit per unit at that price.

Markup versus margin

Markup and margin both describe profit, but they are measured against different bases, and mixing them up is one of the most common wholesale pricing mistakes. Markup is profit divided by cost. Margin is the same profit divided by the selling price instead. A 40 percent markup on a 10 dollar cost produces a 14 dollar price, and the 4 dollar profit works out to about 28.6 percent of that price, not 40 percent. If you need a target margin rather than a target markup, use our margin and markup calculator to convert between the two.

Setting a wholesale price that leaves room for retail

If your buyers plan to resell the product, your wholesale price becomes their cost, and they will apply their own markup on top of it before it reaches a shelf or a checkout page. Price too thin at the wholesale level and your retail partners cannot hit a price that covers their own costs and still looks reasonable to a shopper. It helps to work backward from a realistic retail price, subtract your retailer's expected markup, and check that the wholesale price left over still covers your costs and target profit.