Free Wholesale Pricing Tool Wholesale Pricing & Profit

Wholesale Margin Calculator

Know your gross margin before you confirm your selling price.

Enter your product cost or landed cost and wholesale selling price to instantly calculate gross profit, gross margin and markup.

Use this calculator when evaluating supplier quotations, imported product costs, wholesale pricing, private-label programmes and commercial buying decisions.

Free to use Instant estimate Built for sourcing & trade

% Gross margin

Profit Per-unit profitability

B2B Wholesale pricing tool

Cost / Landed Cost per Unit

Enter your actual product cost per unit. For imported products, using landed cost usually provides a more useful commercial margin calculation.

Wholesale Selling Price per Unit

Enter the price at which you expect to sell one unit to your wholesale customer.

Currency

Use the same currency for both cost and selling price. The calculator does not perform live currency conversion.

Use Landed Cost for Better Import Margin Planning

If you are importing products, consider entering the landed cost per unit rather than only the supplier's FOB or ex-factory price. Freight, duty and destination charges can materially reduce the margin that appears available at first.

Profitability

Wholesale Margin Analysis

Enter your pricing

Add your cost and selling price to calculate gross margin, gross profit and markup.

Estimates generated by this calculator are for preliminary planning only. Actual manufacturing cost, finished weight, material consumption, packing, freight, duty, container utilization or other commercial results may vary according to construction, specifications, production method and supplier.

About this calculator

What Is a Wholesale Margin Calculator?

Wholesale profitability depends on the relationship between what a product costs your business and the price at which you sell it. However, buyers often confuse gross margin with markup, even though they measure profitability from different bases.

Primeval's Wholesale Margin Calculator calculates both. Enter your product cost or landed cost and your wholesale selling price to see gross profit per unit, gross margin percentage and markup percentage.

This makes the calculator useful for importers, wholesalers, retailers, private-label brands, distributors, sourcing teams and home-textile buyers evaluating supplier quotations or establishing selling prices.

For imported merchandise, the quality of the result depends heavily on the cost figure entered. Using only the supplier's unit price can overstate profitability if freight, customs duty, insurance, inland transport and destination charges have not yet been included.

Simple process

How to Calculate Wholesale Margin

Enter your specifications and use the result as a practical starting point for product, sourcing and shipment planning.

Enter your cost per unit

Enter the amount one unit actually costs your business. For imported products, use landed cost when available rather than only the factory or FOB price.

Enter your wholesale selling price

Add the amount you expect to receive from the wholesale customer for one unit before any costs not represented in the calculator.

Select your currency

Choose USD, EUR, GBP, INR or another available currency. Both monetary inputs should be entered in the same currency.

Calculate gross profit

The calculator subtracts product cost from selling price to determine gross profit per unit.

Review gross margin

Gross margin expresses gross profit as a percentage of the selling price.

Compare margin with markup

Markup expresses the same gross profit relative to cost instead of selling price, helping you understand the difference between the two percentages.

Gross margin measures the percentage of selling revenue remaining after subtracting the product cost used in the calculation. Markup measures gross profit relative to that cost.

Formula

Gross Margin (%) = (Selling Price − Cost) ÷ Selling Price × 100

What the values mean

Selling Price: The wholesale selling price received per unit.
Cost: The cost or landed cost of one unit.
Gross Profit: Selling price minus product cost.
Gross Margin: Gross profit expressed as a percentage of selling price.
Markup: Gross profit expressed as a percentage of cost.

Practical examples

Wholesale Margin Calculation Examples

See how typical values translate into a useful planning estimate.

Example 1

$10 Cost and $16 Wholesale Price

If a product costs $10 per unit and is sold wholesale for $16, gross profit is $6 per unit.

Cost: $10.00
Selling Price: $16.00
Gross Profit: $6.00

Result 37.5% gross margin / 60% markup

Example 2

$12 Landed Cost and $20 Selling Price

Using landed cost rather than only factory cost gives an importer a more meaningful view of product-level gross profitability.

Landed Cost: $12.00
Wholesale Price: $20.00
Gross Profit: $8.00

Result 40% gross margin / 66.7% markup

Example 3

€18 Cost and €30 Wholesale Price

The formula works in any currency as long as both input values use the same currency.

Cost: €18.00
Selling Price: €30.00

Result 40% gross margin / 66.7% markup

Example 4

₹500 Cost and ₹800 Selling Price

The percentage relationship is independent of currency. A ₹500 cost and ₹800 selling price creates ₹300 gross profit.

Cost: ₹500
Selling Price: ₹800
Gross Profit: ₹300

Result 37.5% gross margin / 60% markup

Wholesale Profit

What Is Wholesale Gross Margin?

Wholesale gross margin measures the percentage of selling revenue remaining after deducting the product cost included in the calculation.

If a product sells for $20 and costs $12, the gross profit is $8. Because that $8 represents 40% of the $20 selling price, the gross margin is 40%.

Gross margin can help buyers understand whether the planned selling price provides enough room above product cost to support the wider operating expenses and profitability requirements of the business.

Margin vs Markup

Gross Margin and Markup Are Not the Same

Margin and markup use the same selling price, cost and gross-profit values, but they divide gross profit by different numbers.

Gross margin divides gross profit by selling price. Markup divides gross profit by cost. Because of this difference, the markup percentage is normally higher than the equivalent gross-margin percentage.

Gross Margin vs Markup

Metric	Formula	What It Measures
Gross Profit	Selling Price − Cost	Currency profit before other expenses
Gross Margin	Gross Profit ÷ Selling Price × 100	Profit as a percentage of revenue
Markup	Gross Profit ÷ Cost × 100	Price uplift relative to cost

Example

Why a 50% Markup Does Not Mean a 50% Margin

Suppose a product costs $10 and you apply a 50% markup. The selling price becomes $15 and gross profit is $5.

The markup is 50% because $5 profit represents 50% of the $10 cost. But the gross margin is only approximately 33.3% because $5 represents one-third of the $15 selling price.

This distinction is important when pricing wholesale products because confusing markup with margin can lead to substantially lower profitability than intended.

Margin Reference

Gross Margin and Equivalent Markup Reference

The table shows the mathematical relationship between common gross-margin targets and their approximate equivalent markup on cost.

Margin to Markup Reference

Gross Margin	Equivalent Markup
10%	11.1%
20%	25.0%
25%	33.3%
30%	42.9%
33.3%	50.0%
35%	53.8%
40%	66.7%
45%	81.8%
50%	100.0%
60%	150.0%

Importers

Use Landed Cost Instead of FOB Price for Import Margin Planning

For imported merchandise, calculating margin only from a supplier's FOB or ex-factory price can create an incomplete profitability picture.

Your actual inventory cost can include freight, insurance, customs duty, clearance, port charges, inland transport and other destination expenses. If these costs materially belong to the product but are excluded from the cost input, the calculated margin may appear higher than the economic margin available to the business.

Supplier price The factory quotation may represent only one component of the total cost.
International freight Ocean, air or courier freight can materially affect unit economics.
Customs duty Import duties can increase product cost depending on classification and destination.
Insurance Cargo or shipment insurance may need to be included in landed-cost analysis.
Destination charges Port, terminal, clearance, broker and delivery charges can change final cost.

Pricing Strategy

Why Wholesale Buyers Should Calculate Margin Before Placing an Order

A product may appear commercially attractive when reviewing the supplier price but become less attractive after all relevant costs are included. Margin analysis before purchase can help buyers identify whether there is sufficient room between cost and selling price.

Supplier comparison Compare quotations based on their effect on actual commercial profitability.
Target-price negotiation Work backwards from your selling price and required economics when setting sourcing targets.
Range planning Compare expected profitability across different products, materials and designs.
Promotion planning Understand how discounting can reduce gross margin.
Channel comparison Different wholesale, retail and marketplace channels may support different selling prices and costs.

Home Textiles

Wholesale Margin Planning for Home Textile Products

Home-textile products can have very different cost structures depending on material, construction, workmanship, packaging and logistics. A cushion cover, hand-tufted rug, throw, curtain or bedding product should therefore be evaluated using its actual unit economics rather than a single margin assumption for the entire category.

Cushion covers Fabric, embroidery, tufting, trims and retail packaging can substantially change cost.
Rugs & carpets Material, construction, weight, dimensions and freight can heavily influence landed cost.
Throws Yarn composition, weaving, finishing, fringes and packaging affect product economics.
Curtains Fabric consumption, width, lining, heading construction and packaging influence cost.
Bed linen Fabric quality, thread count, processing and set configuration can change unit cost.

Private Label

Private-Label Costs Can Reduce Apparent Margin

Private-label programmes can include additional costs beyond the basic product quotation. Buyers should consider whether these costs belong in the unit cost used for margin analysis.

Custom labels Woven, printed or care labels can add product cost.
Hangtags Branded tags, barcodes and retail information add packaging cost.
Custom packaging Boxes, printed bags, belly bands and inserts can materially change unit economics.
Testing Compliance and performance testing can create programme-level costs.
Development Samples, lab dips, print strike-offs and artwork development can require additional investment.

Discounting

Discounts Can Reduce Margin Faster Than Expected

A percentage reduction in selling price does not create the same percentage reduction in profit. Because product cost may remain unchanged, discounts can have a disproportionately large effect on gross profit.

For example, a product costing $10 and selling for $20 produces $10 gross profit and a 50% gross margin. If the selling price is discounted by 20% to $16 while cost remains $10, gross profit falls to $6 and gross margin becomes 37.5%.

Profitability

Gross Profit Is Not the Same as Net Profit

The calculator measures product-level gross profit using the cost value entered. It does not automatically deduct every expense required to operate a business.

Marketing, sales commissions, salaries, warehouse costs, rent, technology, returns, financing, payment fees, taxes and other operating expenses may still need to be paid from gross profit.

Gross profit Selling price minus the product cost included in the calculator.
Operating expenses Business-level expenses such as payroll, marketing and facilities may not be included.
Net profit Profit remaining after relevant operating, finance, tax and other expenses.

Retailers

Wholesale Margin vs Retail Margin

The same formula can be used at different stages of a supply chain, but each business should use its own cost and selling-price relationship.

A manufacturer selling to an importer, an importer selling to a retailer and a retailer selling to the consumer can each have a different gross margin because their costs, services, risks and selling prices are different.

Cost Accuracy

Your Margin Calculation Is Only as Good as Your Cost Input

Entering an incomplete cost can make margin appear stronger than it actually is. For useful decision-making, define what the cost field represents and use the same methodology consistently across products.

Ex-factory cost Useful for evaluating manufacturing economics but incomplete for many import calculations.
FOB cost Can include export-side costs but normally excludes international freight and destination expenses.
Landed cost Often more useful to an importer because it captures more of the cost required to bring goods to the destination.
Fully allocated cost Some businesses add additional warehousing or channel-specific costs when evaluating product profitability.

Supplier Negotiation

Use Margin Analysis to Set a Target Buying Price

Margin analysis can help buyers understand whether a supplier quotation fits their commercial model. If the planned selling price is already determined, buyers can evaluate different cost scenarios and determine whether they provide sufficient margin.

A separate target-selling-price or target-cost calculator can be useful when working backwards from a specific required gross margin.

Sourcing

A Lower Supplier Price Does Not Always Create a Better Margin

Supplier price is important, but the cheapest initial quotation may not always produce the lowest landed cost. Freight efficiency, packaging, quality failures, minimum quantities, payment terms and supply reliability can influence the actual economics of an order.

Wholesale buyers should therefore compare suppliers on relevant total commercial cost rather than factory price alone.

Common Mistakes

Common Wholesale Margin Calculation Mistakes

Confusing markup with margin A 50% markup on cost does not produce a 50% gross margin.
Using FOB price instead of landed cost This can overstate margin for imported products.
Ignoring discounts Promotions and customer discounts can significantly reduce actual margin.
Ignoring packaging Retail-ready packaging may materially increase unit cost.
Ignoring commissions and channel fees These may need separate profitability analysis depending on your accounting method.
Treating gross margin as net profit Gross margin does not represent final business profitability.

Important

Wholesale Margin Is a Commercial Planning Metric

This calculator provides a mathematical gross-margin and markup calculation based on the cost and selling-price values entered. It does not determine whether a particular margin is appropriate for your business.

Required margins depend on business model, operating expenses, inventory risk, sales channel, payment terms, returns, marketing expenditure, financing requirements and strategic objectives.

For importers & buyers

Before Comparing Wholesale Product Margins

Make sure every product is being evaluated on a comparable cost basis. A margin calculated from FOB price should not be directly compared with another product calculated from fully landed cost.

Use consistent costing

Choose FOB, landed or another defined cost basis and apply it consistently.

Include relevant packaging

Private-label and retail-ready packaging can change unit profitability.

Account for freight

Large or bulky home-textile products can have substantial freight cost per unit.

Check import duty

Applicable duty can materially alter landed cost.

Consider discounts

Calculate profitability at realistic transaction prices rather than only the full list price.

Separate margin from markup

Use the correct metric when setting internal pricing targets.

Source with Primeval

Improve Your Product Economics with Better Sourcing

Primeval helps international buyers source home-textile products from India. Share your product specifications, quantities, target buying price, packaging and market requirements to begin a sourcing discussion.

Use the Wholesale Margin Calculator to understand your commercial target, then compare actual factory quotations and landed-cost estimates before committing to an order.

Cushion covers
Rugs and carpets
Throws
Curtains
Bed linen
Table linen
Kitchen textiles
Bath textiles
Cotton products
Linen products
Jute products
Embroidered textiles
Tufted products
Printed textiles
Private-label development
Custom packaging
Wholesale manufacturing
Export sourcing from India

Buyer questions

Wholesale Margin Calculator FAQs

Helpful answers about calculations, sourcing estimates and commercial planning.

How do I calculate wholesale margin?

Subtract product cost from wholesale selling price to determine gross profit. Divide gross profit by selling price and multiply by 100 to calculate gross margin percentage.

What is the formula for gross margin?

Gross Margin % = (Selling Price − Cost) ÷ Selling Price × 100.

What is wholesale gross profit?

Gross profit per unit is the wholesale selling price minus the product cost used in the calculation.

What is the difference between margin and markup?

Gross margin measures profit relative to selling price, while markup measures profit relative to cost.

Is a 50% markup the same as a 50% margin?

No. A 50% markup produces approximately a 33.3% gross margin. A 50% gross margin corresponds to a 100% markup on cost.

How do I calculate markup?

Markup percentage equals gross profit divided by cost multiplied by 100.

If a product costs $10 and sells for $15, what is the margin?

Gross profit is $5. Gross margin is approximately 33.3%, while markup on the $10 cost is 50%.

If a product costs $10 and sells for $20, what is the margin?

Gross profit is $10, gross margin is 50%, and markup is 100%.

If a product costs $12 and sells for $20, what is the margin?

Gross profit is $8, gross margin is 40%, and markup is approximately 66.7%.

Should an importer use FOB cost or landed cost for margin calculation?

For evaluating import profitability, landed cost often provides a more complete basis because it can include freight, duty and destination costs that FOB price excludes.

What is landed cost?

Landed cost generally refers to the total cost of bringing imported goods to a defined destination, potentially including product cost, freight, insurance, customs duty and other import-related charges.

Does the calculator include freight?

Only if freight is already included in the cost value you enter. The calculator itself does not separately calculate freight.

Does the calculator include import duty?

Only if duty has already been incorporated into the cost or landed-cost figure entered.

Does the calculator calculate net profit?

No. It calculates product-level gross profit and gross margin based on the two prices entered. Business operating expenses and other costs may still need to be deducted.

Is gross margin the same as net margin?

No. Gross margin reflects gross profit after the cost included in the calculation, while net margin accounts for broader business expenses and other deductions.

Can I use this calculator for retail margin?

Yes. The mathematical formula is the same. Enter the relevant product cost and retail selling price.

Can I use it for private-label products?

Yes. Make sure the cost entered appropriately reflects packaging, labels, development allocation or other private-label costs that you want included.

Can this calculator be used for home textiles?

Yes. It can be used for cushions, rugs, carpets, throws, curtains, bedding and other wholesale products.

Can I calculate margin in USD, EUR or GBP?

Yes. Select the desired currency and enter both cost and selling price in that same currency.

Does selecting another currency convert my values automatically?

No. Currency selection controls display formatting. It does not perform live exchange-rate conversion.

Why is markup higher than margin?

Markup divides profit by the lower cost value, while margin divides profit by the higher selling-price value, so markup is normally numerically higher for profitable products.

Can gross margin be negative?

Yes. If selling price is lower than cost, gross profit and gross margin are negative.

What happens if selling price equals cost?

Gross profit is zero, gross margin is 0%, and markup is 0%.

What is a good wholesale margin?

There is no universal target. Appropriate margin depends on product category, operating costs, sales channel, inventory risk, payment terms, discounts and business strategy.

How do discounts affect gross margin?

If product cost remains unchanged, reducing selling price lowers both gross profit and gross margin.

How can I improve wholesale margin?

Possible approaches include improving buying cost, reducing freight and packaging costs, improving selling price, optimizing product specifications, reducing losses and improving sourcing efficiency.

Can supplier negotiation improve gross margin?

A lower comparable unit or landed cost can improve gross margin when selling price remains unchanged, although product quality and total commercial costs should also be considered.

Should packaging be included in product cost?

If packaging is a direct product cost relevant to your profitability analysis, including it creates a more complete unit-cost estimate.

Does this calculator calculate total order profit?

This version calculates gross profit per unit, gross margin and markup. Total order profit can be estimated separately by multiplying gross profit per unit by the quantity sold.

Is the result financial or accounting advice?

No. The calculator is a commercial planning tool based only on the values entered and does not replace accounting, tax or financial advice.

Continue calculating

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