Free tool
Wholesale Price Calculator: Set Wholesale and Retail Prices From Your Cost
To price wholesale, start from your unit cost and pick a target. For a margin target, wholesale price = cost / (1 - margin). For a markup target, wholesale price = cost x (1 + markup). Retailers then often double your wholesale price (keystone), so your wholesale price is half the retail price. The calculator does both and shows each side's profit.
Calculate your wholesale and retail price
Results update as you type. Use any currency: the outputs are in the same unit as your cost. Nothing you enter leaves your browser.
This calculator needs JavaScript. The results below are the worked example, and the formulas on this page let you do the same math by hand.
- Wholesale price
- $20.00
- Suggested retail price (MSRP)
- $40.00
- Your margin
- 40%
- Your markup
- 66.7%
- Retailer margin
- 50%
- Retailer markup
- 100%
- Your profit per unit
- $8.00
- Your profit per order
- $384.00
- Wholesale order total
- $960.00
- Discount off retail
- 50%
Prices round to the cent. Your profit is wholesale price minus unit cost only. Freight, packaging, payment fees, returns and the cost of carrying net terms come on top, so subtract them for your true profit. "Discount off retail" is the percentage to enter if you load wholesale prices as a percentage off your store price.
The wholesale pricing formula
There are two ways to land on a wholesale price, and they give different numbers for the same percentage.
- By markup: wholesale price = cost x (1 + markup). A 50% markup on a $10 cost gives $15.
- By margin: wholesale price = cost / (1 - margin). A 50% margin on a $10 cost gives $20.
- Retail price: retail price = wholesale price x multiplier. Keystone uses a multiplier of 2.
Markup is profit divided by cost. Margin is profit divided by the selling price. The same price has a lower margin than markup, so a seller who wants a 50% margin but applies a 50% markup ends up with a 33.3% margin. Work from margin when you are protecting profit, and use markup when a buyer or a supplier quotes one.
Margin to markup
| Margin | Equal markup |
|---|---|
| 20% | 25% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100% |
| 60% | 150% |
Why keystone is half of retail
The retailer takes the price it pays you and doubles it. That is a 100% markup and a 50% margin for the retailer, which is why many brands set wholesale at half of the suggested retail price (MSRP) from the start. If your own margin at that price is too thin, raise both prices together. Retailers compare margins before they stock a brand, so cutting their share is the wrong lever.
Related terms: markup, keystone pricing, wholesale price and MSRP.
ExampleA $12 bag sold in a case of 48
A fictional bag costs $12 to make. You want a 40% margin, the retailer applies keystone, and the retailer buys 48 units.
| Step | Math | Result |
|---|---|---|
| Your unit cost (COGS) | Given | $12.00 |
| Wholesale price at a 40% margin | $12.00 / (1 - 0.4) | $20.00 |
| Your markup on cost | ($20.00 - $12.00) / $12.00 | 66.7% |
| Retail price at keystone (2x) | $20.00 x 2 | $40.00 |
| Retailer margin | ($40.00 - $20.00) / $40.00 | 50% |
| Your profit per unit | $20.00 - $12.00 | $8.00 |
| Your profit on 48 units | $8.00 x 48 | $384.00 |
The wholesale price is 50% off the suggested retail price, which is the number to use if you apply wholesale as a percentage adjustment in Shopify.
Common wholesale pricing mistakes
- Mixing up markup and margin. The same percentage means different prices. Write down which one your formula uses.
- Pricing on product cost alone. Freight, packaging, payment fees, returns, discounts and the cost of carrying net 30 terms all cut into profit.
- Forgetting the retailer's side. If your wholesale price forces a retail price shoppers will not pay, the retailer will not reorder. Check the retail price against similar products.
- Leaving no room for volume tiers. If your first wholesale price is already your floor, a quantity discount for larger orders puts you under cost. Check the lowest tier against your cost.
- One price for every buyer. Distributors, retailers and first-time buyers often get different prices. Decide the groups first, then price each.
Once prices are set, put them on a line sheet so retailers can see the wholesale price, MSRP, minimum order and case pack side by side. The wholesale pricing hub covers price lists, custom pricing and quantity breaks in more depth.
Load the prices into Shopify
With native Shopify B2B catalogs
In the Shopify admin, a catalog sets what a company sees. You can price a catalog two ways. For an overall percentage, open the catalog under Markets, Catalogs, choose Price decrease in Overall adjustments and enter the percentage. Use the "Discount off retail" result above when your store price is your MSRP. For exact prices, enter a fixed price for each product or variant, or import a CSV that identifies each row by SKU and has a Fixed Price column. Fixed prices override the overall adjustment for those products.
Basic, Grow and Advanced allow up to 3 active catalogs across all B2B markets, and Shopify Plus allows unlimited catalogs. Sources: Shopify Help Center: Creating catalogs and Catalogs and pricing in B2B, read October 8, 2026.
With BSS B2B Solution
BSS B2B Solution prices by customer tag, customer or company location, so three catalogs is not a ceiling. Use Custom Pricing for a percentage off retail, or a Price List for an exact price per variant. A Price List can be bulk-created by CSV, with one row per SKU, the discount type "Fixed price" and your wholesale price as the value. Volume Pricing tiers then apply to that base price, not to retail. Price Lists need the Platinum plan, and the app manages them, so they do not appear on Shopify's Catalogs page. Check the pricing page for the plans of the other modules.
Docs: Import and export price list rules and Set tiered pricing by purchase volume. We make BSS B2B Solution, so check Shopify's pages as well before you choose.
Show each buyer group its own price
Set custom prices, price lists and quantity breaks by customer tag, customer or company location, without duplicating products.
Frequently asked questions
How do you calculate a wholesale price?
Start from your unit cost, then either add a markup (cost x (1 + markup)) or work back from a target margin (cost / (1 - margin)). A common shortcut is to set the wholesale price at half of the suggested retail price, which gives the retailer a keystone margin.
What is the difference between markup and margin?
Markup is profit as a percentage of cost. Margin is profit as a percentage of the selling price. A product that costs $10 and sells for $15 has a 50% markup and a 33.3% margin. Mixing them up is the most common wholesale pricing mistake.
What is keystone pricing?
Keystone pricing means the retailer doubles the wholesale price to set the retail price. That is a 100% markup, which leaves the retailer a 50% margin on the shelf price. Real markups vary by industry, so treat keystone as a starting point.
Should my wholesale price be 50% of retail?
It is a common starting point, not a rule. Check your own margin at that price after freight, packaging, payment fees, returns and any net terms you offer. If the margin is too thin, raise the retail price and the wholesale price together instead of cutting the retailer's share.
Can I set wholesale prices in Shopify without an app?
Yes. Shopify's native B2B lets you assign a catalog to a company with a percentage adjustment or fixed prices per product or variant. Basic, Grow and Advanced allow up to 3 active catalogs, so an app helps when you have more buyer groups.
More tools: line sheet template, net 30 terms template. Our editorial policy explains how we check content.