Wholesale Price Calculator

From your unit cost to a wholesale price and a suggested retail price that leaves every tier its margin

Updated 2026-11-04

Your unit cost

Your wholesale margin

Retailer margin (50% = keystone)

Distributor margin (0 if you sell to shops directly)

Wholesale price: $16.00
Suggested retail price (MSRP): $32.00
Your profit per unit: $8.00
Retailer profit per unit: $16.00
Retail price ÷ your cost: 4.00×
Your margin selling direct at MSRP: 75.0%

Each price = the cost to that seller ÷ (1 − its margin). Check the MSRP against what similar products sell for.

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If you make a product and sell it to shops, you need two prices: the wholesale price you charge the retailer and the suggested retail price (MSRP) the retailer charges the customer. Each one has to leave its seller a margin. Enter your unit cost and the margins and the calculator works out both. With an $8 unit cost, a 50% wholesale margin and the retailer's usual 50% (keystone), the wholesale price is $16 and the retail price is $32, four times your cost. Add a distributor in the middle and it shows how far the shelf price has to rise. Nothing is stored or sent.

How wholesale pricing works

Price each step from the margin it needs: price = cost ÷ (1 − margin). Your wholesale price = unit cost ÷ (1 − your margin). If a distributor sits between you and the shop, the retailer's cost = wholesale ÷ (1 − distributor margin). The suggested retail price = retailer's cost ÷ (1 − retailer margin).

Worked example: a candle costs $8 to make (wax, wick, jar, label and labor). At a 50% wholesale margin it wholesales for 8 ÷ 0.5 = $16. A shop taking a 50% keystone margin sells it for 16 ÷ 0.5 = $32. You make $8 per candle wholesale; if you sell the same candle direct at $32 your margin is 75%.

With a 25% distributor margin the chain gets longer: you still sell at $16, the distributor sells to the shop at 16 ÷ 0.75 = $21.33, and keystone retail becomes $42.67. That is why products sold through distribution need a lower cost or a higher shelf price.

Unit cost of $8, your margin 50%, retailer margin 50%
Channel	Price to the next buyer	Profit per unit	Multiple of your cost
You to retailer (wholesale)	$16.00	$8.00	2.0×
Retailer to customer (MSRP)	$32.00	$16.00	4.0×
With a 25% distributor: distributor to retailer	$21.33	$5.33	2.7×
With a 25% distributor: MSRP	$42.67	$21.33	5.3×

Keystone and other rules of thumb

Keystone pricing means the retailer doubles its cost, a 100% markup or 50% margin, and many makers also set wholesale at double their cost. That gives the familiar "cost × 2 = wholesale, wholesale × 2 = retail" chain. Retailers in categories with high overheads or slow-moving stock often ask for more than keystone; ask each buyer what margin they need rather than assuming.

Check the result against the market. If the MSRP the calculator suggests is well above what similar products sell for, the fix is usually on the cost side (materials, batch size, packaging) rather than a thinner margin for you or the shop.

Before you send a wholesale price list

A clear price list with wholesale price, MSRP, case pack and minimum order is what most shop buyers look for first.

Use the full unit cost: materials, packaging, labor at a real hourly rate, and a share of shipping supplies.
Set a minimum order quantity or minimum order value so small orders still pay for picking and packing.
Decide who pays shipping and say so on the price list.
Publish an MSRP and keep your own direct price at or above it, so you do not undercut the shops that stock you.
Leave room for promotions: a retailer who discounts 20% still needs to make a margin.

Frequently asked questions

How do I calculate a wholesale price?

Divide your unit cost by 1 minus the margin you want. With an $8 cost and a 50% margin, 8 ÷ 0.5 = $16 wholesale.

What is the usual markup from wholesale to retail?

The traditional rule is keystone: the retailer doubles the wholesale price, a 100% markup or 50% margin. A $16 wholesale item retails for $32.

How do I calculate MSRP from wholesale?

Divide the wholesale price by 1 minus the retailer's margin. For a 50% retail margin, multiply wholesale by 2.

What wholesale margin should a maker aim for?

Enough to cover your overheads and profit after the unit cost. Many makers start at 50% (double the cost) and adjust after checking what similar products retail for.

How does a distributor change the price?

The distributor adds its own margin between you and the shop. With a 25% distributor margin a $16 wholesale price becomes $21.33 to the retailer and $42.67 at keystone retail.

Should my own online price match the MSRP?

Usually, yes. Selling direct below the MSRP undercuts the retailers who stock you, and many will drop a line that is cheaper on the maker's own site.

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