Shopify profit margin calculator
Work out what you actually keep on a retail order and on every wholesale tier, in the same view. Fees, shipping and volume discounts included.
Your numbers
Set a discount off retail for each volume tier. Everything recalculates as you type.
| Tier | Min qty | Off retail | Wholesale price | Your profit | Your margin | Retailer margin |
|---|
Break-even against retail
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Why retail margin alone will mislead you
Most Shopify margin calculators assume one price and one buyer. The moment you add wholesale, three things change at once and each of them moves the number:
- Your price drops — typically 30% to 50% off retail, sometimes more at volume.
- Your cost per order drops too — one 200-unit order costs far less to pick, pack and process than 200 single orders, and net terms invoices avoid card fees entirely.
- A second margin appears — your stockist's. Price so their margin is too thin and they will not carry the line, however healthy your own number looks.
A wholesale order at 45% margin can be worth more than a retail order at 62% once fulfilment and fees are netted out. That is the comparison this calculator is built to make.
The formulas
Profit margin
Margin is the share of the selling price you keep. It can never exceed 100%.
Markup
Markup is the uplift on cost, and it can run well past 100%. A 50% margin is a 100% markup — the single most common pricing mistake is treating the two as interchangeable.
Wholesale price from a target margin
To hold a 40% wholesale margin on a $12 unit: 12 ÷ 0.60 = $20.00.
Keystone
The traditional default: the retailer buys at half of retail, doubling their money. It is a starting convention, not a rule, and it only works if your COGS sits well under a quarter of retail.
Typical wholesale margins by category
Benchmarks for the brand selling wholesale. Treat them as a sanity check, not a target.
| Category | Typical wholesale margin |
|---|---|
| Beauty and skincare | 60–75% |
| Fashion and apparel | 50–65% |
| Home goods | 45–60% |
| Food and beverage | 35–50% |
| Electronics and tech | 25–40% |
Across Shopify stores generally, gross margins cluster at 50–70%, while net margins after shipping, fees and marketing land nearer 10–20%.
Pricing it is the easy half
Running three tiers, per-customer price lists and net terms on a live Shopify store is the other half. B2Bridge does it with unlimited price lists, customer groups and orders on a flat plan.
See how tiered wholesale pricing worksCommon questions
What is a good profit margin for a Shopify store?
Most Shopify stores run 50–70% gross margin on retail. After shipping, payment fees, apps and marketing, net margin usually settles between 10% and 20%. On wholesale, 15–50% is the normal band, varying widely by category — beauty sits high, electronics low.
What is the difference between margin and markup?
Margin measures profit against the selling price; markup measures it against cost. A $12 unit sold at $24 has a 50% margin and a 100% markup — the same dollar of profit described two ways. Quoting a markup figure as though it were margin will overstate profitability every time.
How do I calculate a wholesale price?
Divide your unit cost by one minus your target margin: a $12 unit at a 40% target gives 12 ÷ 0.60 = $20.00. Then check the number from the other side — at a $40 retail price, your stockist keeps 50%, which is enough for most retail categories.
Do Shopify payment fees apply to wholesale orders?
Not usually. Wholesale buyers commonly pay by invoice on net 15, 30, 60 or 90 terms, or by bank transfer, which avoids the 2.9% + $0.30 card fee. On a $1,000 order that is roughly $29 back in your pocket. If you take cards on B2B orders, switch the toggle in the calculator to include the fee.
What margin should I leave my retailer?
Aim for 40–50% of the retail price. Below about 35% most stockists will not carry a line, because it does not cover their own rent, staff and markdowns. This is why keystone pricing became the default: at 50% off retail, the arithmetic works for both sides without negotiation.
Should wholesale margin be lower than retail margin?
Almost always, and that is fine. Wholesale trades margin percentage for order size and predictability. The figure worth watching is profit per order rather than margin per unit — a 45% margin on a 200-unit purchase order will beat a 65% margin on a single item, and it arrives with no customer acquisition cost attached.
