Wholesale
Wholesale Margin Calculator
Work out the supplier margin on a wholesale price and the retailer margin on the retail price, side by side.
Formula
Supplier margin = (wholesale price − unit cost) ÷ wholesale price × 100. Retailer margin = (retail price − wholesale price) ÷ retail price × 100. Margin is always a share of the selling price, which is why it differs from markup, which is a share of cost.
How it works
Enter what the product costs to make or buy, the price you sell it at wholesale, and the price the retailer sells it at. The calculator shows each side's profit per unit and margin separately, so a healthy-looking wholesale margin cannot hide a thin retailer margin.
Worked example
A product costs $8.00, sells wholesale at $20.00 and retails at $40.00. Supplier profit is $20.00 − $8.00 = $12.00 per unit, a margin of $12.00 ÷ $20.00 = 60.0%. Retailer profit is $40.00 − $20.00 = $20.00 per unit, a margin of $20.00 ÷ $40.00 = 50.0%. The retailer markup on the wholesale price is $20.00 ÷ $20.00 = 100.0%. Interpretation: both sides keep a strong share here, but the retailer keeps more dollars per unit even though its margin percentage is lower, because its selling price is higher.
FAQs
What is the difference between wholesale margin and retailer margin?
Wholesale margin is the supplier's share of the wholesale price after unit cost. Retailer margin is the retailer's share of the retail price after paying the wholesale price. They describe two different sellers in the same chain, so they are rarely equal.
Why is margin not the same as markup?
Margin divides profit by the selling price, while markup divides profit by cost. On a $20 wholesale price with an $8 cost, the margin is 60.0% but the markup is 150.0%. Mixing them up is the most common wholesale pricing mistake.
What margin should a wholesaler aim for?
There is no single correct margin: it depends on volume, handling, returns and how much service you provide. Use this calculator to test your real costs rather than copying another seller's percentage.
Does this calculator include shipping or platform fees?
No. It covers product cost and the two selling prices only. Add freight, packaging and any marketplace charges separately before you judge whether a margin is enough.
Can the retail price be lower than the wholesale price?
It can be entered, but a retail price below the wholesale price gives the retailer a negative margin, which means the retailer loses money on every unit before any other cost.
Stand: October 2026. Pure arithmetic — no platform rate is used; enter your own figures.
Disclaimer: Results are estimates and general information only, not financial advice. Check your supplier agreement and platform terms before you set a price.
Related calculators
Wholesale Retail Markup Calculator
Instant result, no sign-up.
All tools are free.
Each page shows the formula it uses, so you can check the result yourself.
Built for phone browsers.
Price your next order with confidence
Run the numbers before you commit, so margins never surprise you later.