About the Wholesale Price Calculator
This wholesale price calculator links the three prices every product brand juggles: what a unit costs you to make or buy, the wholesale price you charge stores, and the suggested retail price (MSRP) shoppers pay. Start from whichever number you know — your cost, a wholesale price a buyer proposed, or the retail price the market will bear — and the calculator works out the other two using a multiplier at each step.
It is built for makers, product brands, importers and distributors preparing a line sheet or negotiating with retailers. "Keystone" pricing — doubling the price at each step (a 2× multiplier, or a 50% margin) — is the traditional starting point in gift, apparel and specialty retail, but many categories use different multipliers, so both are adjustable.
Results show the gross margin and markup for you and for the retailer, the profit each side makes per unit, and the totals for a wholesale order of the size you enter. Cost should be your fully landed unit cost — materials, labor, packaging, freight and duties — so the margins reflect real profit.
With the default inputs, the wholesale price is $24.00. Change any value above to recalculate instantly.
How to use the wholesale price calculator
- 1Choose whether you are starting from your cost, a wholesale price or a target retail price.
- 2Enter that price per unit.
- 3Set the wholesale and retail multipliers — leave both at 2× for keystone pricing.
- 4Enter the size of a typical wholesale order.
- 5Review the prices, each side’s margin and the order totals, then adjust the multipliers until both work.
Formula and method
Each step of the supply chain multiplies the price it pays by a multiplier. Starting from cost, the wholesale price is cost × the wholesale multiplier and the retail price is wholesale × the retail multiplier. Working backwards from a target retail price, the calculator divides by each multiplier instead, which gives the highest unit cost you can afford.
Gross margin is profit as a share of the selling price, while markup is profit as a share of cost. A 2× (keystone) multiplier means a 100% markup and a 50% margin; in general margin = 1 − 1 ÷ multiplier, so 2.5× gives 60% and 3× gives about 66.7%.
- Mw
- Wholesale multiplier applied to landed unit cost
- Mr
- Retail multiplier applied to the wholesale price
- Cost
- Fully landed cost per unit
Worked examples
Keystone pricing from a $12 cost
Doubling a $12 landed cost gives a $24 wholesale price, and the retailer doubles that again to a $48 MSRP. Both sides earn a 50% gross margin, and a 100-unit order brings in $2,400 with $1,200 gross profit for you.
Working back from a $59.99 retail price
If the product must sell for $59.99 and the retailer uses keystone, your wholesale price is about $30.00. To earn a 60% margin (a 2.5× multiplier) your landed cost cannot exceed about $12.00 per unit.
A buyer offers $18 wholesale
At $18 wholesale with a 2.2× target, your cost needs to be about $8.18 per unit. The retailer’s 2.5× multiplier puts the shelf price at $45 (a 60% retail margin), and a 250-unit order is worth $4,500 with roughly $2,455 gross profit for you.
Frequently asked questions
What is keystone pricing?+
Keystone pricing means doubling the price at each step: wholesale is twice your cost and retail is twice wholesale. It equals a 100% markup and a 50% gross margin, and is the traditional default in gift, apparel and specialty retail.
How do I calculate wholesale price from retail price?+
Divide the retail price by the retailer’s multiplier. With keystone (2×), a $40 retail item has a $20 wholesale price. If the retailer wants a 60% margin, divide by 2.5 instead, giving $16.
What is the difference between margin and markup?+
Markup is profit divided by cost; margin is profit divided by selling price. Buying at $10 and selling at $20 is a 100% markup but a 50% margin. Retail buyers almost always talk in margin.
What multiplier should I use for wholesale?+
Many product brands aim for a wholesale price of 2× to 2.5× landed cost so they keep 50–60% gross margin to cover overhead, marketing and distributor fees. Low-margin, high-volume categories such as grocery and electronics run much thinner multipliers.
What should be included in unit cost?+
Use the fully landed cost: materials or purchase price, direct labor, packaging, inbound freight, import duties and payment or platform fees tied to each unit. Leaving these out overstates your margin.
What does MSRP mean?+
MSRP stands for manufacturer’s suggested retail price — the price the brand recommends stores charge. Retailers can usually choose to sell above or below it, but a consistent MSRP protects your brand and your retail partners’ margins.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.