Wholesale Price Calculator
(Unit Cost to Wholesale and Retail Price)
Enter what one unit costs you to make and the margin you want on the wholesale price. Add the retailer's multiplier to see the shelf price.
Step 1 — Your Unit Production Cost
Factory, utilities, admin
Step 2 — Your Target Wholesale Margin
Profit you want to keep, as a % of the wholesale price you charge retailers
Step 3 — Retailer's Markup Multiplier
What the retailer multiplies your wholesale price by to set the shelf price. 2.0× (keystone) gives the retailer a 50% margin
Calculated Results
Enter your production cost and target margin to calculate your wholesale price.
This wholesale price calculator is for makers and brands that sell to shops. Enter the materials, labor and overhead that go into one unit and the margin you want to keep. It returns the wholesale price to charge retailers and your profit per unit. Add the retailer's multiplier and it also shows the shelf price your product would end up at.
How to Calculate a Wholesale Price
A product with $8 of materials, $3 of labor and $1.50 of overhead costs $12.50 a unit. To keep 40% of the wholesale price, charge 12.50 ÷ 0.60 = $20.83. The profit is $8.33 a unit.
| Wholesale margin | Wholesale price on a $12.50 cost | Your profit per unit | Retail price at 2.0× |
|---|---|---|---|
| 30% | $17.86 | $5.36 | $35.71 |
| 40% | $20.83 | $8.33 | $41.67 |
| 50% | $25.00 | $12.50 | $50.00 |
| 60% | $31.25 | $18.75 | $62.50 |
Doubling the cost is the 50% row.
From Wholesale Price to Retail Price
A retailer sets the shelf price by multiplying what they paid you. Doubling it is called keystone.
At 2.0×, the $20.83 wholesale price becomes $41.67 on the shelf and the retailer keeps a 50% margin. The multiplier a shop uses is its own decision, so ask the buyers you sell to.
| Retail multiplier | Retailer's margin | Shelf price on a $20.83 wholesale price |
|---|---|---|
| 1.8× | 44.4% | $37.50 |
| 2.0× (keystone) | 50% | $41.67 |
| 2.2× | 54.5% | $45.83 |
| 2.5× | 60% | $52.08 |
The retailer's side of the same sum is in the Retail Price Calculator.
Working Back From the Retail Price
Often the shelf price is the fixed point, because shoppers compare your product with others beside it. In that case start at the end.
If similar products sell for about $40 and shops use 2.0×, your wholesale price has to be about $20. With a $12.50 unit cost that leaves $7.50, a 37.5% margin. If that is not enough, the cost has to come down or the product has to justify a higher shelf price. Raising the wholesale price alone pushes the product above its competitors.
Getting the Unit Cost Right
- Materials: everything that ends up in the product, plus packaging and the freight you pay to bring materials in.
- Labor: the time to make one unit at a real hourly rate, including your own.
- Overhead: rent, utilities, equipment and admin for a period, divided by the units you expect to make in it.
- Order size: buying materials in larger quantities usually lowers the cost per unit, so use the cost at the volume you really buy.
If you also sell direct to customers, keep your own price close to the projected retail price. A direct price far below it undercuts the shops that stock you. The Cost-Plus Pricing Calculator prices from cost with a markup instead of a margin.
How to Use the Wholesale Price Calculator
- Enter the cost of one unit: Type materials, labor and overhead per unit. The three are added to give the unit cost.
- Enter your wholesale margin: Type the share of the wholesale price you want to keep as profit, as a percentage.
- Enter the retail multiplier: Type the number the retailer multiplies your wholesale price by. 2.0 is keystone.
- Read the result: The calculator shows the wholesale price, your profit per unit, the projected retail price and the retailer's margin.
Frequently Asked Questions
How do I calculate a wholesale price?
Add up the cost of one unit and divide by 1 minus the margin you want, as a decimal. A product that costs $12.50 to make with a 40% wholesale margin is 12.50 ÷ 0.60 = $20.83.
Is the wholesale price just double the cost?
Doubling the cost is one way to do it, and it is the same as a 50% wholesale margin. A $12.50 unit cost doubled is $25. Whether that works depends on the retail price it leads to once the retailer adds their own margin.
What is keystone pricing?
Keystone is a retail term for doubling the wholesale price to set the retail price. A $20.83 wholesale price becomes a $41.67 shelf price, and the retailer keeps a 50% margin.
How do I work out a wholesale price from a retail price?
Divide the retail price by the retailer's multiplier. A product that should sell for $40 in a store that uses 2.0× has to wholesale at $20. Subtract your unit cost from that to see what is left for you.
Should overhead be in the unit cost?
Yes. A wholesale price built only on materials and labor leaves rent, equipment and admin to be paid out of profit. Divide the overhead for a period by the units you expect to make in it and add that amount to each unit.
What is the difference between wholesale margin and markup?
Margin is profit as a share of the wholesale price. Markup is profit as a share of cost. A $12.50 cost sold at $20.83 is a 40% margin and a 66.7% markup.
Formulas and worked examples checked in October 2026.