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.
Financial Disclaimer: MerchSites tools and guides provide estimates for product pricing, margin analysis, and expense planning. All calculations are performed locally in your web browser. Content is for educational purposes and does not constitute formal tax, legal, or accounting advice.