Free Wholesale Profitability Tool Wholesale Pricing & Profitability

Wholesale Margin Calculator

See how much margin and gross profit a product may generate before you place the order.

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

This calculator is built for importers, wholesalers, distributors, retailers, private-label brands and sourcing teams comparing product economics before committing to inventory.

Free to use Instant estimate Built for sourcing & trade

% Gross margin

$ Profit per unit

B2B Wholesale planning tool

Cost per Unit

Enter the cost of one unit. For import profitability, using landed cost per unit usually gives a more meaningful result than factory price alone.

Selling Price per Unit

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

Quantity

pcs

Enter the number of units to estimate total sales value, total cost and gross profit.

Currency

Use the same currency for cost and selling price.

Margin vs Markup

Margin measures profit as a percentage of selling price. Markup measures profit as a percentage of cost. They are not the same calculation.

Profitability Estimate

Wholesale Profitability

Enter your cost and selling price

Complete the fields to calculate wholesale margin, markup and gross profit.

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 margin is one of the most important numbers in product sourcing. A product can appear inexpensive at the factory level but become significantly more expensive after freight, duty, packaging, inspection, warehousing and other costs are added.

Primeval's Wholesale Margin Calculator helps buyers compare product cost with intended selling price and estimate gross margin, markup and gross profit before committing to inventory.

The calculator is useful for importers, wholesalers, distributors, retailers, private-label brands and sourcing teams evaluating new product opportunities, supplier quotations or planned retail pricing.

For the most commercially useful result, use your realistic landed cost per unit rather than only the supplier's factory price whenever landed-cost information is available.

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

Use the amount that best represents your real product cost. For imported goods, landed cost is generally more useful than the factory price alone.

Enter your selling price

Add the expected wholesale, distributor or retail selling price for one unit.

Add your quantity

Enter the number of units to estimate total cost, revenue and gross profit for the planned order.

Calculate gross profit

The difference between selling price and unit cost is the estimated gross profit per unit.

Review margin and markup

The calculator shows both gross margin and markup because the percentages use different bases.

Evaluate total order economics

Use quantity-level revenue and gross-profit estimates to compare sourcing opportunities and inventory commitments.

Gross margin expresses gross profit as a percentage of selling price, while markup expresses that same gross profit as a percentage of product cost. Because they use different denominators, margin and markup percentages should not be used interchangeably.

Formula

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

What the values mean

Cost per Unit: The amount associated with acquiring or producing one unit.
Selling Price: The price received when one unit is sold.
Gross Profit: Selling price minus product cost.
Gross Margin Percentage: Gross profit divided by selling price and multiplied by 100.
Markup Percentage: Gross profit divided by product cost and multiplied by 100.
Quantity: The number of units included in the planned sale or order.

Practical examples

Wholesale Margin Calculation Examples

See how typical values translate into a useful planning estimate.

Example 1

$8 Cost and $20 Selling Price

A product costs $8 per unit and is sold for $20.

Cost: $8.00
Selling Price: $20.00
Gross Profit: $12.00

Result 60% gross margin and 150% markup

Example 2

$10 Landed Cost and $18 Wholesale Price

An importer has a landed unit cost of $10 and expects to sell to retailers at $18.

Landed Cost: $10.00
Wholesale Price: $18.00

Result 44.4% gross margin

Example 3

500 Units with $6 Profit per Piece

A wholesale order generating $6 gross profit per unit creates a significantly larger total gross-profit figure when volume is considered.

Quantity: 500 pcs
Gross Profit per Unit: $6.00

Result $3,000 estimated gross profit

Example 4

€7 Cost and €14 Selling Price

If the cost is exactly half the selling price, gross margin is 50% while markup is 100%.

Cost: €7.00
Selling Price: €14.00

Result 50% margin and 100% markup

Wholesale Profitability

What Is Wholesale Margin?

Wholesale margin is a profitability measure showing the portion of the selling price remaining after the direct product cost is deducted. It is commonly expressed as a percentage of selling price.

For example, if a product costs $8 and sells for $20, gross profit is $12. Because that $12 represents 60% of the $20 selling price, gross margin is 60%.

Margin can help buyers evaluate whether a product has enough pricing room to support overhead, marketing, discounts, returns, warehousing and other business expenses.

Margin vs Markup

Wholesale Margin and Markup Are Not the Same

Margin and markup describe the same basic profit difference from two different perspectives.

Gross margin compares profit with selling price. Markup compares profit with cost. This distinction is important because a 50% markup does not mean a 50% margin.

Margin vs Markup Example

Cost	Selling Price	Gross Profit	Markup	Margin
$10	$15	$5	50%	33.3%
$10	$20	$10	100%	50%
$10	$25	$15	150%	60%
$10	$30	$20	200%	66.7%

Formula

How to Calculate Gross Margin

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

If a product costs $12 and sells for $30, gross profit is $18. Dividing $18 by $30 gives 0.60, so the gross margin is 60%.

Markup

How to Calculate Markup

Markup is calculated by dividing gross profit by product cost rather than selling price.

Using the same example — $12 cost and $30 selling price — the gross profit is $18. Dividing $18 by the $12 cost produces a markup of 150%.

Importers

Why Importers Should Use Landed Cost for Margin Calculations

Using only a supplier's factory price can make an imported product appear more profitable than it really is. Importers may incur freight, insurance, customs duty, taxes, port charges, brokerage, inspection and domestic delivery costs before products reach the warehouse.

For a more useful commercial calculation, determine the realistic landed cost per unit first and use that value as the cost input.

Factory price The supplier's quoted product price may represent only one part of the total acquisition cost.
International freight Ocean, air, rail or road freight can materially change the effective cost per unit.
Duty and tax Applicable import charges can increase the cash cost of bringing merchandise into the destination market.
Destination charges Brokerage, terminal fees, local handling and inland delivery may need to be allocated across units.
Inspection and compliance Testing and inspection expenses may also belong in a complete profitability model.

Wholesale Pricing

How Wholesale Price Affects Your Margin

Small changes in selling price can create meaningful changes in gross margin, especially when product cost remains fixed.

Example Margin at Different Selling Prices

Cost	Selling Price	Profit	Margin
$10	$15	$5	33.3%
$10	$18	$8	44.4%
$10	$20	$10	50.0%
$10	$25	$15	60.0%
$10	$30	$20	66.7%

Buyer Planning

Why Gross Margin Matters Before Placing a Wholesale Order

Buying inventory commits working capital. A margin calculation allows buyers to evaluate the economic relationship between acquisition cost and expected selling price before placing the order.

Supplier comparison Compare how different supplier quotations affect your expected profitability.
Price planning Test whether your intended selling price provides sufficient margin.
Inventory investment Estimate the gross-profit opportunity associated with the capital committed to an order.
Discount planning Understand how promotions or negotiated customer discounts can reduce margin.
Category comparison Compare potential profitability across cushions, rugs, curtains, bedding or other product categories.

Wholesale vs Retail

Wholesale Margin vs Retail Margin

A manufacturer, importer, distributor, wholesaler and retailer can each sell the same product at different stages of the supply chain. As a result, each party may have a different cost base, selling price and margin.

An importer selling directly to consumers may evaluate margin using landed cost and retail price. A wholesaler selling to retailers may evaluate landed cost against wholesale selling price. The same underlying formula applies, but the relevant cost and selling-price inputs change.

Private Label

Margin Planning for Private-Label Products

Private-label products can include expenses that standard wholesale products may not carry. Product development, labels, packaging, artwork, testing, sampling and smaller production runs can increase the effective unit cost.

When estimating private-label margin, allocate these relevant expenses across the expected production quantity rather than ignoring them.

Samples Development and courier charges can be allocated across the expected commercial order when appropriate.
Custom packaging Labels, printed boxes, inserts, belly bands or special polybags increase unit economics.
Testing Testing and compliance costs may be fixed expenses that need to be spread across units.
Artwork and development One-time development costs can affect the effective economics of smaller orders.

Discounts

How Customer Discounts Reduce Wholesale Margin

Gross margin is calculated from the price actually received, not the original list price. If a wholesale customer negotiates a lower price or a retailer runs a promotion, gross margin decreases unless the product cost also decreases.

Buyers should therefore test margin at realistic net selling prices rather than relying only on recommended retail price or standard wholesale price.

Returns

Gross Margin Does Not Include Every Business Expense

Gross margin is an important product-level measure, but it is not the same as net profit. Business expenses can remain after gross profit is calculated.

Marketing Advertising, marketplace fees, creator commissions and customer acquisition costs can reduce final profitability.
Warehousing Storage, fulfilment and handling costs may sit outside a basic gross-margin calculation.
Returns Returns, damages and customer-service costs can reduce realized profitability.
Payment fees Card, marketplace, banking and payment-processing fees may reduce net revenue.
Operating expenses Payroll, rent, software, administration and other overhead are generally not included in gross margin.

Margin Targets

What Is a Good Wholesale Margin?

There is no single gross-margin percentage that is appropriate for every product or business. Required margin depends on business model, category, operating expenses, inventory risk, sales channel, return rate, competition and customer expectations.

A business with high marketing and fulfilment expenses may require a different gross margin from a distributor operating with lower selling costs. Buyers should therefore set margin targets using their own cost structure rather than relying on a universal benchmark.

Reverse Pricing

Use Margin Targets to Work Backwards to a Target Cost

Margin calculations can also be used in reverse. If the market determines the maximum selling price, buyers can calculate how low their landed cost needs to be to achieve the required margin.

This can help establish a target factory price before negotiating with suppliers.

Example

Wholesale Margin Example for a Cushion Cover Importer

Suppose an importer sources a cushion cover with a landed cost of $8 and sells it to a retailer for $14. Gross profit is $6 per piece.

Gross margin is $6 ÷ $14 × 100, or approximately 42.9%. Markup is $6 ÷ $8 × 100, or 75%.

If the importer sells 1,000 pieces under the same simplified assumptions, the estimated gross profit is $6,000 before other operating expenses.

Example

Wholesale Margin Example for Rugs

Suppose a rug has a landed cost of $32 and is sold wholesale for $55. Gross profit is $23 per rug.

The gross margin is approximately 41.8%, while markup on cost is approximately 71.9%. This distinction illustrates why buyers should state clearly whether they are discussing margin or markup during commercial planning.

Buying Decision

Lower Factory Price Does Not Always Mean Better Margin

A lower quoted factory price may appear attractive, but the final landed cost can be affected by packaging, freight efficiency, product weight, carton dimensions, duty, defect rate, payment terms and minimum order quantity.

A slightly higher factory price from a supplier offering better packing efficiency, lower defects or more commercially practical MOQs can sometimes create better overall economics.

Compare landed cost Evaluate the full cost of getting sellable inventory into your warehouse.
Consider MOQ A lower unit price can require substantially more inventory investment.
Consider quality Poor quality can create returns, claims, markdowns and replacement costs.
Consider freight efficiency Compact packaging and efficient container utilization can improve cost per unit.

Important

Gross Margin Is Not Net Profit

The calculator estimates product-level gross margin and gross profit using the cost and selling price entered. It does not automatically deduct marketing, salaries, warehouse costs, payment fees, returns, taxes, financing or other operating expenses.

Use the result as one part of a broader profitability analysis rather than treating gross margin as final business profit.

For importers & buyers

Before Using Margin to Approve a Product

Margin is most useful when the cost input reflects the real economics of acquiring saleable inventory.

Use landed cost where possible

Factory price alone can underestimate the true product cost for imported merchandise.

Use realistic selling price

Calculate against the price customers are expected to actually pay after normal discounts.

Check MOQ investment

A strong percentage margin does not remove the working-capital risk of excessive inventory.

Consider returns and defects

Expected claims, markdowns and product losses can reduce realized profitability.

Include channel fees

Marketplace commissions, payment fees and fulfilment costs may sit outside gross margin.

Compare total profit

A product with a lower margin percentage can still produce meaningful total gross profit at sufficient volume.

Source with Primeval

Need Better Factory Pricing for Your Target Margin?

Primeval helps international buyers source home-textile products from India. If you already know your target selling price and margin requirement, share the product specification, quantity and target cost.

A clear commercial target can make supplier sourcing and product development more focused.

Target-price sourcing
Wholesale product development
MOQ discussion
Factory pricing support
Private-label development
Cushions and pillow covers
Rugs and carpets
Curtains
Bedding
Throws
Home-textile collections
Custom designs
Packaging development
Sampling coordination

Buyer questions

Wholesale Margin Calculator FAQs

Helpful answers about calculations, sourcing estimates and commercial planning.

How do you calculate wholesale margin?

Subtract cost per unit from selling price to calculate gross profit. Divide gross profit by selling price and multiply by 100 to calculate gross margin percentage.

What is the wholesale margin formula?

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

What is gross profit per unit?

Gross profit per unit is selling price minus product cost before other operating expenses are deducted.

What is the difference between margin and markup?

Margin calculates profit as a percentage of selling price. Markup calculates profit as a percentage of cost.

Is 50% markup the same as 50% margin?

No. If cost is $10 and selling price is $15, markup is 50% but gross margin is approximately 33.3%.

What markup gives a 50% margin?

A 50% gross margin corresponds to a 100% markup on cost. For example, a $10 cost and $20 selling price produce both a 50% margin and 100% markup.

Should an importer calculate margin from factory cost or landed cost?

Landed cost generally provides a more realistic product-level margin because it can incorporate freight, duty and other relevant acquisition costs.

What is landed cost?

Landed cost is an estimate of the cost of getting imported merchandise to the intended destination, potentially including goods value, freight, insurance, duty, taxes and other relevant charges.

Does wholesale margin include shipping?

Only if shipping or freight has already been included in the cost value you enter. The calculator itself does not automatically add freight.

Does gross margin include marketing expenses?

No. Basic gross margin normally compares product revenue with product cost. Marketing and other operating expenses are usually evaluated separately.

Does gross margin include payment-processing fees?

Not automatically. If you want those fees reflected in the product economics, they must be included in your effective cost or evaluated separately.

Is gross margin the same as net profit margin?

No. Gross margin focuses on revenue minus product cost, while net profit margin accounts for a broader range of operating and other expenses.

Can gross margin be negative?

Yes. If the selling price is lower than the cost, gross profit and gross margin can be negative.

Can margin be more than 100%?

Under the standard gross-margin formula using positive selling price and cost, margin does not normally exceed 100%. Markup, however, can exceed 100%.

Why can markup exceed 100%?

Markup compares profit with cost. If profit is greater than the original product cost, markup exceeds 100%.

How do I calculate total gross profit?

Multiply gross profit per unit by the number of units sold.

Can I use this calculator for retail pricing?

Yes. Enter your product cost and expected retail selling price to estimate gross margin and markup.

Can I use this calculator for wholesale pricing?

Yes. Enter your unit cost and wholesale selling price to evaluate gross margin.

Can distributors use this calculator?

Yes. The same margin and markup formulas apply to distributors comparing purchase cost with resale price.

Can I calculate margin for private-label products?

Yes. Use an effective cost that includes the relevant private-label development, packaging and acquisition costs you want included in the calculation.

What is a good wholesale margin?

There is no universal margin target. Appropriate margin depends on product category, sales channel, overhead, inventory risk, competition, returns, marketing expenses and business strategy.

How can I improve wholesale margin?

Potential approaches include negotiating product cost, improving freight efficiency, reducing unnecessary packaging expense, increasing selling price, lowering defects, optimizing MOQ and improving operational efficiency.

Does higher order quantity always improve margin?

Not necessarily. Larger quantities may reduce unit cost, but they can also increase inventory risk, storage requirements and working-capital commitment.

Can this calculator help with supplier negotiations?

Yes. If you know your target selling price and required margin, you can use margin analysis to identify the maximum product cost that may work commercially.

What happens if my selling price equals my cost?

Gross profit is zero, so gross margin and markup are both zero.

What happens if my selling price is lower than cost?

The product produces a gross loss under the simplified calculation, resulting in negative gross profit and margin.

Can I calculate margin in USD, EUR, GBP or INR?

Yes. Select the currency used for both your cost and selling price. The calculator does not perform live exchange-rate conversion.

Is this calculator suitable for home-textile importers?

Yes. It can be used for cushions, rugs, carpets, curtains, bedding, throws and other products when evaluating basic product economics.

Is the result a complete profitability forecast?

No. It is a gross-margin estimate based on the values entered. Net profitability requires additional operating, financing, tax and other business expenses to be considered.

Continue calculating

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