Wholesale to Retail Price Calculator

About this calculator

A wholesale quote is for a case, and the freight on that case is part of what each piece costs you. Leaving the inbound freight out is the single most common reason a margin worked out on paper does not survive contact with the bank statement.

This calculator divides the lot down to a landed cost per piece, then works back up to the retail price that hits your target once the marketplace has taken its share.

How to use this calculator

1. Enter what the lot costs and how many pieces are in it.
2. Add the freight to get the lot to you - it belongs in the cost.
3. Choose whether you are aiming at a markup or a margin, and set the target.
4. Add packaging, outbound shipping and a fee percentage if they apply.
5. Read the retail price, the landed cost and the break-even price.

The formula

Landed cost per piece = (Lot cost + inbound freight) / pieces
Cost to sell          = Landed cost + packaging + outbound shipping

Then the price that hits the target, allowing for a fee charged on that price:

For a markup: Price = (Cost + Cost x markup) / (1 - fee rate)
For a margin: Price =  Cost / (1 - fee rate - margin)

The margin formula has a ceiling built into it: once the fee rate and the target margin add up to 1, no price works, because the two together would claim the entire sale. Markup has no such ceiling, which is why it is the default here.

Worked example

A lot of 100 pieces at 24,000 with 1,500 of freight, targeting a 60% markup with 10 of packaging and a 15% fee:

Landed cost per piece   255.00   ((24,000 + 1,500) / 100)
Cost to sell            265.00   (+ 10 packaging)
Retail price            498.82   ((265 + 159) / 0.85)
Marketplace fee         -74.82
Cost to sell           -265.00
Profit per piece        159.00   (31.9% margin, 60% markup)
Profit on the lot    15,900.00

Note that a 60% markup is a 31.9% margin, not a 60% one. The two questions have different answers and this is what the difference looks like in money.

Notes and limits

Freight on the lot is spread evenly across the pieces, which is right when the pieces are of similar size and weight. For a mixed lot, split the freight yourself and enter each product separately.

• The lot is assumed to sell in full. If you expect to be left with stock, raise the target to cover it.
• Customs duty, if any, belongs in the freight figure.
• GST on the purchase is not netted off here; the GST profit calculator handles input credit.

What this calculation assumes

• Inbound freight is spread evenly across the lot, which suits pieces of similar size and weight.
• The whole lot sells; unsold stock is not accounted for.
• Any fee percentage is the figure you entered, not a published marketplace rate.