Wholesale Price Calculator
Determines wholesale price from cost and desired margin using absorption pricing
Cost to produce or acquire one unit
Target profit margin as a percentage of wholesale price
Optional overhead costs as a percentage of unit cost
Enter cost and margin to calculate wholesale price
Revenue minus total cost per unit
Profit as a percentage of total cost
Frequently Asked Questions
How do I set a wholesale price?
Start with your total cost per unit (materials, labor, packaging, overhead). Then divide by (1 minus your desired profit margin as a decimal). For example, if a product costs $10 to make and you want a 40% margin, the wholesale price is $10 / (1 - 0.40) = $16.67.
What is the typical wholesale margin?
Wholesale margins typically range from 15-50% depending on the industry. Consumer goods often target 30-50%. Industrial products may work with 15-25%. The margin must cover overhead, returns, shipping, and still leave profit after all costs.
What is the difference between margin and markup for wholesale?
Margin is profit as a percentage of the selling price. Markup is profit as a percentage of the cost. A 50% markup on a $10 item gives a $15 price, but the margin is only 33%. Always clarify which metric you are using when discussing pricing with partners.
Should I include overhead in my wholesale price?
Yes. Your wholesale price should cover all costs, not just direct material and labor costs. Include a share of rent, utilities, equipment, shipping, and administrative costs. Failing to account for overhead can result in selling at a loss despite having a positive gross margin.
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