Wholesale Margin Calculator
Calculate wholesale unit prices, suggested retail prices (MSRP), manufacturer gross margins, and retailer margins side-by-side.
Wholesale & Retail Tier Inputs
In B2B wholesale distribution, a manufacturer sells products to a retail buyer at wholesale price (typically 50% off MSRP). The retailer then sells the product to end consumers at MSRP (Manufacturer's Suggested Retail Price), earning a keystone 50% retail margin. Both tiers must preserve margin for profit.
What the Wholesale Margin Calculator Does
Transitioning from direct-to-consumer (DTC) sales to wholesale catalog distribution requires a dual-tier margin model. Wholesale buyers require a 50% retail margin (Keystone pricing) to cover store rent, retail staff, and local overhead.
The MerchSites Wholesale Margin Calculator models both manufacturer wholesale margins and retailer retail margins side-by-side. It calculates your required wholesale unit price, suggested retail price (MSRP), wholesale markup %, and order-level profit based on case pack quantities.
Who Should Use This Calculator
Designed for wholesale brand owners, physical product manufacturers, and B2B sales representatives:
Wholesale Manufacturers
Brands pitching boutique buyers or big-box retail stockists who need to establish catalog wholesale prices that protect factory gross margins.
Faire & B2B Marketplace Sellers
Makers selling wholesale on platforms like Faire, Abound, or Tundra where 15% to 25% marketplace commissions apply to wholesale order subtotals.
The 50/50 Wholesale Price Waterfall
Standard wholesale pricing follows a two-stage margin waterfall:
Wholesale Price = Landed Production Cost / (1 - Target Wholesale Margin %)
MSRP Retail Price = Wholesale Price / (1 - Target Retail Margin %)
Worked Example: $14 Manufacturing Cost Journal
A stationery manufacturer produces hardcover linen journals for $14.00 total landed factory cost. The brand requires a 50% wholesale gross margin and offers retailers a standard 50% Keystone margin.
Common Wholesale Pricing Mistakes
Frequently Asked Questions
How do wholesale and retail margins differ?
Wholesale margin is the profit earned by the manufacturer when selling to a retail buyer. Retail margin is the profit earned by the store owner when reselling to end consumers at MSRP.
What is a standard wholesale discount off MSRP?
Standard wholesale pricing offers retail stockists a 50% discount off MSRP (Keystone). Some competitive high-volume categories offer 40% to 45% wholesale discounts.
MerchSites tools and guides are written and reviewed by ecommerce practitioners. Calculations are cent-accurate estimations based on reported platform fees and standard formula math.