Wholesale price calculator
Price up from your cost, or work backwards from a retail price you already know. Either way you'll see your margin, your markup, and what your stockist keeps.
Markup and margin converter
Same profit, two different numbers. Type in either box.
The word that quietly changes your price by a third
Ask two people to add "50%" to a $10 unit and you'll get two different prices. One says $15. The other says $20. Both are right, because one is using markup and the other is using margin.
| On a $10 unit cost | Formula | Wholesale price |
|---|---|---|
| 50% markup | 10 x 1.50 | $15.00 |
| 50% margin | 10 ÷ 0.50 | $20.00 |
That's a 33% gap on the same instruction. Markup measures profit against your cost. Margin measures it against the selling price, so margin is always the smaller number for the same money. Most wholesale calculators use markup without telling you which one they picked. This one lets you choose, and shows both in the result.
The formulas
Wholesale price from a target margin
An $11.50 all-in cost at a 40% target margin: 11.50 ÷ 0.60 = $19.17.
Wholesale price from a markup
The same $11.50 at a 40% markup: 11.50 x 1.40 = $16.10. Lower, because markup is measured against the smaller number.
Converting between the two
A 40% margin is a 66.7% markup. A 50% margin is a 100% markup. The two only agree at zero.
Retail price from wholesale
Keystone is a 2.0x multiplier, which hands the retailer a 50% margin. Boutiques often work at 2.5x, and jewellery or cosmetics can reach 3x.
Which direction should you price in?
Most calculators only run one way, from cost upward. That works when you control the market. It breaks the moment your category has an established shelf price.
- Price up from cost when your product is genuinely differentiated, or when you're first to a category. Your costs set the floor and the market accepts the result.
- Work back from retail when shoppers already know what this kind of product costs. A $48 candle sells; a $71 candle sits. Start at $48, take 50% off for the retailer, and check whether $24 still clears your costs.
Working backwards often reveals the uncomfortable answer, which is that your costs are too high for the shelf price your category supports. That's worth finding out before you print a price sheet rather than after.
Typical wholesale margins by category
Benchmarks for the brand selling wholesale. Use them as a sanity check on your own number rather than a target to hit.
| Category | Wholesale margin | Retail multiplier |
|---|---|---|
| Cosmetics and skincare | 60–75% | 2.5–4.0x |
| Jewellery | 50–60% | 2.5–3.0x |
| Fashion and apparel | 50–65% | 2.0–2.5x |
| Home goods | 45–60% | 2.0–2.5x |
| Food and beverage | 35–50% | 2.0–2.5x |
| Electronics and tech | 25–40% | 1.5–2.0x |
Figures describe common practice for independent brands selling through boutiques and specialist retailers. Categories with heavy labour per unit sit at the top of each band.
Electronics is the exception to the 40% retailer rule elsewhere on this page. At a 1.5x multiplier the retailer keeps 33%, below the floor most other categories hold, which is why electronics retail leans on volume and attachments rather than unit margin.
Five ways wholesale pricing goes wrong
- Leaving your own labour out of the unit cost, which quietly prices your time at zero on every order you ship.
- Confusing markup with margin, then wondering why the margin report disagrees with the price sheet.
- Ignoring overhead, because rent and insurance carry on whether the order is wholesale or retail.
- Setting a price that leaves the retailer under 35%, at which point most stockists decline the line however good the product is.
- Charging one price at every order size, when a 500-unit order genuinely costs less per unit to pick, pack and process than a 25-unit one.
The last one is the most common on Shopify specifically. Brands set a single wholesale price because their store can only hold one, then discount by hand on the invoice afterwards.
Pricing it is the easy part
Running these prices live on Shopify is the other part. B2Bridge gives each buyer their own price list with volume tiers, MOQs and net terms, on unlimited price lists, customer groups and orders at a flat plan.
Book a DemoCommon questions
How do you calculate a wholesale price?
Add your materials, labour, packaging and a share of overhead to get your all-in unit cost, then apply your target uplift. For a margin, divide the cost by one minus the margin: an $11.50 cost at a 40% margin gives 11.50 ÷ 0.60 = $19.17. For a markup, multiply instead: 11.50 x 1.40 = $16.10.
What is a good wholesale margin?
Between 35% and 50% suits most categories, though cosmetics and skincare run higher at 60% to 75% and electronics lower at 25% to 40%. The figure matters less than whether it survives your real overhead and still leaves the retailer 40% or more.
How do I convert a wholesale price to a retail price?
Multiply by the retailer's multiplier. Keystone is 2.0x, which gives the retailer a 50% margin and is the traditional default. Boutiques often work at 2.5x and jewellery or cosmetics can reach 3x, because they carry slower stock and higher shop costs.
What is the difference between wholesale markup and wholesale margin?
Markup measures profit against your cost. Margin measures the same profit against the selling price. A $10 unit sold at $20 carries a 100% markup and a 50% margin. Quoting a markup as though it were a margin overstates profitability every time.
Should I price up from cost or back from retail?
Price up from cost when you set the market. Work back from retail when your category already has an accepted shelf price, which is most of the time. Working backwards tells you early whether your costs fit the price shoppers will actually pay.
How much margin does the retailer need?
Aim for 40% to 50% of the retail price. Below roughly 35%, most stockists won't carry the line, because it fails to cover their rent, staff and markdowns. Keystone pricing became the default precisely because it clears that bar without negotiation.
Should wholesale prices change with order size?
Usually yes. Larger orders cost less per unit to pick, pack and process, so volume tiers reward buyers for ordering more while protecting your margin at the small end. Set the tiers where your buyers actually order, not at round numbers.
Built by B2Bridge, the all-in-one B2B app for Shopify. Figures are estimates for planning only, not accounting or tax advice.
