Wholesale Pricing Formula: How to Set a Profitable Wholesale Price

A wholesale price needs to leave enough margin for your business while still giving the retailer room to earn a profit at the final retail price.

Wholesale Pricing Formula

Wholesale Price = Total Unit Cost / (1 – Selling Fee Rate – Target Wholesale Margin)

Start With Full Unit Cost

Include materials, manufacturing, packaging, labor, and an allocated share of overhead if those costs should be covered by wholesale sales.

Check Retailer Margin

Retailer margin is calculated from the difference between suggested retail price and wholesale price, divided by the retail price.

Use the Wholesale Price Calculator

Use our Wholesale Price Calculator to estimate wholesale price, your profit, markup, break-even price, and the retailer’s margin.

Related Wholesale Tools

You can also use the Wholesale Discount Margin Calculator when modeling retailer discounts and promotional pricing.