HOW THIS TOOL WORKS
Understand your result
See whether a wholesale offer leaves room for both maker and retailer. This calculator uses the inputs above to produce a planning estimate. It does not predict sales or guarantee that the modeled price will work for your buyers.
Calculation formula
Unit cost = materials + labor + packaging + overhead. Minimum modeled wholesale price = unit cost ÷ (1 − maker wholesale margin). Indicative shelf price = wholesale price ÷ (1 − retailer gross margin).
Worked example
When a product costs $24.50 to make, a 35% maker margin implies $37.69 wholesale. A retailer targeting a 50% gross margin would price it around $75.38 before tax.
Before you rely on the estimate
- Retailer gross margins are not the same as their net profits after rent, wages or returns.
- Wholesale arrangements may have shipping, damage allowances, credit terms and minimum order sizes that affect your final terms.
- A 50% retail margin does not mean retail is always exactly twice wholesale; it follows from the chosen margin assumption here.
Frequently asked questions
Is wholesale always 50% of retail?
No. That is one common simplifying example, not a rule. Set margin assumptions that work for the product and retailer.
Does this include sales tax?
No. The prices are modeled before sales tax.
What if the retail price looks too high?
Revisit unit economics, expected volume, packaging and channel strategy. Do not assume retailers can sell every product at the calculated price.