Wholesale vs retail margin calculator

Wholesale vs Retail Calculator

Compare profit per unit at your retail price versus your wholesale price. See if your wholesale discount is sustainable before you say yes to a stockist. This wholesale vs retail price calculator is built for makers, handmade brands, and ecommerce sellers.

Calculator

Compare your wholesale vs retail profit and margin

Core pricing inputs

Use this wholesale vs retail price calculator for small business decisions by comparing your direct-to-consumer price against your stockist price on the same product.

Display only. This does not convert between currencies.

All-in cost per unit - materials, labour, and a fair share of overhead.

Assumed before tax. Use the Sales Tax / GST Margin Helper for tax-aware analysis.

If you edit wholesale price, the wholesale discount is recalculated from retail.

If you edit discount, wholesale price is recalculated from retail. Keystone is around 50%.

Use this for extra freight, wholesale packaging, or sales commission.

Typical order sizes

These optional order quantities help compare the profit on a typical direct-to-consumer order versus a typical wholesale order.

Results

Wholesale vs retail at a glance

Retail (D2C)

Direct-to-consumer profit per unit at your current retail price.

Retail price per unit

A$30.00

Profit per unit

A$20.00

Margin %

66.7%

Markup %

200.0%

Profit per typical retail order

A$20.00

Wholesale (B2B)

Profit after wholesale pricing and any extra wholesale-only unit costs.

Wholesale price per unit

A$15.00

Wholesale discount vs retail

50.0%

Profit per unit

A$5.00

Margin %

33.3%

Markup %

50.0%

Profit per typical wholesale order

A$250.00

Cost as % of retail

33.3%

Discount label

Keystone range (retail ~= 2x wholesale)

Retail / wholesale

2.00x

Keystone means retailers can roughly double your wholesale price and still keep around 50% margin.

Wholesale readiness

Review your cost and discount. Small changes in price or cost can make wholesale more sustainable.

At this setup, wholesale profit per unit is A$5.00 and retail profit per unit is A$20.00.

Breakdown

Retail and wholesale side-by-side

MetricRetailWholesale
Price per unitA$30.00A$15.00
Cost per unitA$10.00A$10.00
Profit per unitA$20.00A$5.00
Margin66.7%33.3%
Markup200.0%50.0%
Profit per typical orderA$20.00A$250.00

This wholesale vs retail profit margin calculator for makers and ecommerce compares the same product across both channels, so you can see whether wholesale volume makes up for the lower unit margin.

How this is calculated

How your current wholesale vs retail comparison is calculated

This walkthrough updates live from the form so you can see how wholesale price, discount, profit, margin, markup, and wholesale-readiness signals are built from your current inputs.

Open the live calculation walkthroughUses your current retail, wholesale, cost, and order-size inputs.
Input
Current inputs: cost per unit = A$10.00, retail price per unit = A$30.00, wholesale price per unit = A$15.00, wholesale discount = 50.0%, extra wholesale-only cost per unit = A$0.00, typical retail order size = 1, typical wholesale order size = 50.
Formula
Wholesale price per unit = retail price per unit x 1 - wholesale discount (50.0%) = A$30.00 x 0.500 = A$15.00.
Result
Retail profit per unit = retail price per unit - cost per unit = A$30.00 - A$10.00 = A$20.00.
Result
Retail margin = retail profit per unit / retail price per unit = A$20.00 / A$30.00 = 66.7%.
Formula
Wholesale cost per unit = cost per unit + extra wholesale-only cost per unit = A$10.00 + A$0.00 = A$10.00.
Result
Wholesale profit per unit = wholesale price per unit - wholesale cost per unit = A$15.00 - A$10.00 = A$5.00.
Result
Wholesale margin = wholesale profit per unit / wholesale price per unit = A$5.00 / A$15.00 = 33.3%.
Result
Cost as % of retail = cost per unit / retail price per unit = A$10.00 / A$30.00 = 33.3%.
Meaning
In plain English: this wholesale to retail price calculator with margin and markup shows how much direct-to-consumer profit you keep, how much is left after a wholesale discount, and whether your cost is low enough relative to retail for wholesale to be sustainable.

How it works

How the Wholesale vs Retail Calculator works

This wholesale vs retail margin calculator compares the same product across direct-to-consumer and wholesale channels so you can judge discount sustainability, unit profit, and readiness for stockists more clearly.

Wholesale price vs retail price

Retail is the direct-to-consumer price on your own site, at a market, or through Etsy. Wholesale is the lower stockist price that leaves room for a shop to resell the same product at its own margin.

Why wholesale discounts often land around 40% to 60%

A wholesale discount calculator often points sellers toward the 40% to 60% range because retailers need enough room to cover their own costs and still make money. Keystone pricing sits near the middle, where wholesale is about 50% off retail.

Why cost as a % of retail matters so much

If your product cost already takes a large share of the retail price, wholesale discounts can quickly erode profit. That is why a wholesale vs retail profit margin calculator for makers should always compare cost against retail, not just discount percentage alone.

Wholesale pricing guidance

This wholesale discount rate calculator uses standard margin, markup, and keystone-style pricing logic to compare channels. It is designed to help you understand unit economics, not to replace your own category research or negotiations with retailers.

Use cases

When to use this wholesale vs retail price calculator

This tool is most useful when you are deciding whether a product can support both direct-to-consumer and wholesale channels without damaging margin.

  • Test a new product before offering wholesale to see whether the wholesale discount still leaves enough unit profit.
  • Check whether a proposed stockist discount still works after extra wholesale-only costs such as freight, custom packaging, or commissions.
  • Balance direct-to-consumer and wholesale strategy when deciding how to set wholesale and retail prices for handmade products.

FAQ

Wholesale vs retail pricing FAQs

Short answers to the pricing questions makers, handmade brands, and ecommerce sellers ask most often before offering wholesale.

What is the difference between wholesale price and retail price?

Retail price is what the end customer pays when you sell direct to consumer. Wholesale price is the lower price a stockist or retailer pays so they still have room to resell the product at a profit.

What is a good wholesale discount off retail? Is keystone still standard?

Many wholesale deals land somewhere around 40% to 60% off retail, with keystone sitting near 50% off retail. It is still a useful reference point, but the right discount depends on your cost structure, category, and what the retailer expects.

How do I know if my product is wholesale-ready?

A product is more wholesale-ready when its cost stays low enough relative to retail price that you can offer a wholesale discount and still keep healthy profit. If cost takes a large share of retail, wholesale can quickly become fragile.

How do I calculate wholesale price from my retail price?

Multiply the retail price by one minus the wholesale discount rate. For example, a 50% wholesale discount on a retail price of $30 gives a wholesale price of $15.

How do I calculate retail price from my wholesale price?

If you know the wholesale discount, divide wholesale price by one minus that discount rate. In keystone-style pricing, retail is often roughly double the wholesale price.

What margin should I aim for at wholesale vs retail?

Retail margins are usually higher because you are not sharing the sale with a retailer. Wholesale margins are often lower, so the goal is not matching retail margin exactly but making sure wholesale still leaves enough profit to be worth the volume and channel growth.

Can I use this calculator for handmade products and digital products?

It is best suited to physical handmade and product-based businesses because it compares wholesale and retail unit economics. Digital products usually do not follow the same stockist, packaging, and channel-margin patterns.

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