# Wholesale Price Calculator

> Start from your unit cost and the margin each party needs. See your wholesale price, what a distributor charges retailers, and a realistic suggested retail price.

- Source: https://plugstack.dev/tools/wholesale-price-calculator/
- Published by: PlugStack
- Last updated: 2026-09-24

## The price chain

 

Every party in the chain adds a margin on top of what it paid. Working with margins (not markups) keeps the maths consistent:

 
- **Your wholesale price** = your cost ÷ (1 − your margin)
- **Distributor price to retailers** = wholesale ÷ (1 − distributor margin)
- **Retail price (MSRP)** = retailer’s buying price ÷ (1 − retailer margin)

 

## Example: direct to retailers

 

Unit cost $8, your margin 40%, retailer margin 50% (keystone):

 

| Step | Price | Profit per unit |
| --- | --- | --- |
| Your cost | $8.00 | — |
| Your wholesale price | $13.33 | $5.33 |
| Suggested retail price | $26.67 | $13.33 (retailer) |

 

Add a distributor at 25% and the retailer now pays $17.78, pushing the shelf price to $35.56. If $35 is too much for your market, you either accept a lower wholesale margin or find a lower cost.

 

## Checking your numbers against the market

 

Work backwards too: take the retail price similar products sell for, remove the retailer’s margin and the distributor’s, and see what’s left for you. If it is below your cost plus a reasonable margin, the product won’t work in that channel — better to find out before you print a wholesale price list.

 

## Wholesale on your own WooCommerce store

 

Selling to trade customers online usually needs three things: a different price for wholesale buyers, minimum order quantities or case packs, and volume tiers for larger orders. [Qtyra](https://plugstack.dev/plugins/qtyra-quantity-rules-tiered-pricing/) handles the quantity side for free (minimums, steps, per-product tiers) and adds role-based wholesale rules in Pro. To set volume breaks on top of your wholesale price, switch this tool to [quantity tiers](https://plugstack.dev/tools/tiered-pricing-calculator/).

## FAQ
### How do you calculate a wholesale price?
Wholesale price = unit cost ÷ (1 − your margin). With an $8 cost and a 40% margin: 8 ÷ 0.60 = $13.33.

### What is a normal wholesale margin?
Brands selling direct to retailers often target 35–50% gross margin on wholesale. Retailers typically need 45–60% on their side, which is why retail prices usually land at roughly 2–2.5× the wholesale price.

### What is keystone pricing?
Keystone means the retailer doubles the wholesale price — a 50% retailer margin. A product wholesaled at $20 retails for $40.

### How does a distributor change the price?
A distributor buys from you at your wholesale price and adds its own margin (often 15–30%) before selling to retailers, who then add theirs. Either the shelf price goes up, or you lower your wholesale price to keep the shelf price competitive. Tick the distributor box to see both.

### What is MSRP?
Manufacturer’s suggested retail price — the price you recommend retailers sell at. Set it from the retailer margin they need, not from your cost, or stores won’t carry the product.