Wholesale margin calculator
Check that your wholesale price leaves enough for you and for the retailer, and compare it with selling the same product yourself.
Example numbers. Replace them with yours.
- Your wholesale margin
- 42.3%
- Your profit per unit
- USD 11
- Wholesale markup
- 73.3%
- Retailer margin
- 42.2%
- Your margin selling direct
- 66.7%
What it calculates
When you sell wholesale, the gap between retail and your cost is split two ways. Your share is the wholesale price minus your cost. The retailer's share is the retail price minus your wholesale price. If either side is too thin, the deal does not last.
How to read the result
Your direct margin is higher, but direct sales carry ad cost, shipping and returns that wholesale usually does not. Ask the retailer what margin they need before you set the wholesale price.
Learn the metric:Gross margin
The formula
Your wholesale margin = (Wholesale − Cost) ÷ Wholesale Wholesale markup = (Wholesale − Cost) ÷ Cost Retailer margin = (Retail − Wholesale) ÷ Retail Direct margin = (Retail − Cost) ÷ Retail
Worked example
Example inputs
- Your cost per unit
- USD 15
- Wholesale price
- USD 26
- Retail price
- USD 45
Results
- Your wholesale margin
- 42.3%
- Your profit per unit
- USD 11
- Wholesale markup
- 73.3%
- Retailer margin
- 42.2%
- Your margin selling direct
- 66.7%
What changes the result
Wholesale price at five values. Every other input stays as in the worked example; the highlighted row is the example.
| Wholesale price | Your wholesale margin | Retailer margin |
|---|---|---|
| USD 20.80 | 27.9% | 53.8% |
| USD 23.40 | 35.9% | 48% |
| USD 26 | 42.3% | 42.2% |
| USD 28.60 | 47.6% | 36.4% |
| USD 31.20 | 51.9% | 30.7% |
Use your real numbers
Analify reads your retail prices and product costs from Shopify, so you can compare wholesale terms with what direct orders really earn after ads, shipping and returns.
Analify already reads 2 of these 3 inputs live, from Shopify
Start freeQuestions
How do I calculate wholesale price?
Start from the retail price and the margin the retailer needs: Wholesale = Retail × (1 − retailer margin). Then check your own margin at that price.
Why is wholesale margin lower than direct margin?
The retailer keeps part of the gap between cost and retail price. In return you skip most of the ad, shipping and return costs of selling direct.
Is wholesale worth it for a DTC brand?
Compare the wholesale profit per unit with what a direct order leaves after ads, shipping and returns, not with the direct margin alone.
Do you store what I enter?
No. The calculation runs in your browser and nothing is sent to Analify.
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