# Wholesale margin calculator

> Free wholesale margin calculator. Check your margin at the wholesale price, the retailer's margin at the retail price, and your margin selling direct.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/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.

## 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.

## Formula

```
Your wholesale margin = (Wholesale − Cost) ÷ Wholesale
Wholesale markup = (Wholesale − Cost) ÷ Cost
Retailer margin = (Retail − Wholesale) ÷ Retail
Direct margin = (Retail − Cost) ÷ Retail
```

## Worked 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 as in the example.

| Wholesale price | Your wholesale margin | Retailer margin |
| --- | --- | --- |
| USD 20.80 | 27.9% | 53.8% |
| USD 23.40 | 35.9% | 48% |
| USD 26 (example) | 42.3% | 42.2% |
| USD 28.60 | 47.6% | 36.4% |
| USD 31.20 | 51.9% | 30.7% |

## 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.

## Questions

**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.

## 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 reads 2 of these 3 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/wholesale-margin-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools