Wholesale Margin Calculator
Calculate wholesale and retail margins from cost, wholesale and retail price.
This tool runs entirely in your browser. Your files are never uploaded to a server.
50.0%
Wholesale margin
50.0%
Retail margin
75.0%
Overall margin
2.00x
Retail / wholesale multiplier
What this calculator does
Compares unit cost, wholesale price, and retail price across a two-stage channel. It reports wholesale margin, retailer margin, end-to-end margin, and the retail-to-wholesale price multiplier.
How to use it
Enter one unit cost, its wholesale selling price, and final retail price in the same currency and tax basis. Results update immediately; wholesale and retail prices must both be positive.
Worked example
At the defaults of 8 cost, 16 wholesale, and 32 retail, wholesale margin is 50.0%, retailer margin is 50.0%, overall margin is 75.0%, and retail divided by wholesale is 2.00x.
Formulas used
Wholesale margin is (wholesale − cost) / wholesale. Retail margin is (retail − wholesale) / retail, overall margin is (retail − cost) / retail, and the multiplier is retail / wholesale.
Understanding the outputs
Each margin uses its own selling price as denominator, so wholesale and retail percentages cannot be added to get overall margin. A 2.00x multiplier describes price relation, not a 200% profit margin.
Limitations
The model excludes shipping, duties, discounts, rebates, returns, taxes, marketplace fees, payment fees, overhead, and sales volume. Unit cost may be negative in the form, so enter non-negative business values.
Interpretation and privacy
Use consistent landed cost and net prices when comparing channels; target margins differ by product and contract. Results are planning estimates. All calculations run locally and inputs are not uploaded.
Frequently Asked Questions
- What is keystone pricing?
- Keystone pricing means setting the retail price at double the wholesale price (a 2x multiplier) — this tool shows your actual multiplier so you can compare.
- What's a typical wholesale margin?
- It varies by industry, but many wholesalers aim for at least 15-25% margin over their unit cost.
- Why does overall margin differ from wholesale + retail margin?
- Margins aren't additive because each is a percentage of a different price — overall margin is the total profit (retail price minus cost) as a share of the retail price.