Wholesale Price Calculator

Understanding Wholesale Pricing

• Keystone markup means doubling the wholesale price to get retail. Retailers expect this room to make a profit.
• Your wholesale price should be 2–2.5× your total production cost so you profit at wholesale rates.
• RRP (Recommended Retail Price) gives retailers guidance and protects your brand from being undercut.
• Never price below cost. If 2× cost doesn't cover expenses, your cost structure needs review.

Wholesale Tips

• Set a minimum order to make wholesale financially worthwhile (common: $100–$300).
• Offer a line sheet with your wholesale and RRP prices clearly listed.
• Consider a minimum order quantity (MOQ) in addition to a dollar minimum.

How to Calculate a Wholesale Price

A practical wholesale price starts with the true cost of one finished unit, not just the raw materials. Include materials, paid labor, packaging, and a fair share of overhead before applying a wholesale multiplier.

Wholesale price = total unit cost × wholesale multiplier. For example, if a product costs $12 to make and you use a 2.5× multiplier, the wholesale price is $30. If a retailer uses keystone pricing and doubles the wholesale price, the suggested retail price would be $60.

The multiplier is a planning tool, not a universal rule. A lower multiplier can leave too little room for damaged goods, samples, admin time, discounts, or rising material costs. A higher multiplier may be appropriate when labor is intensive, demand is strong, or the product has meaningful design value beyond its raw inputs.

Wholesale Margin vs. Markup

Markup and margin are related but they are not the same number. If a $12 item sells wholesale for $30, the wholesale profit is $18. The markup on cost is 150%, while the gross margin is 60% because $18 is 60% of the $30 selling price.

Gross margin = (wholesale price − unit cost) ÷ wholesale price × 100. Use margin to check whether the price leaves enough room to operate the business after the product itself is made.

What Should Be Included in Product Cost?

• Materials: fabric, yarn, blanks, findings, labels, and other components used in the product.
• Labor: your production time at a realistic hourly rate, not zero-dollar owner labor.
• Packaging: boxes, mailers, tissue, tags, inserts, and product-specific packaging.
• Overhead: equipment, software, workspace, utilities, insurance, and other costs allocated across products.

How Minimum Order Quantity Works

If you set a minimum wholesale order value, the minimum number of units is the order minimum divided by the wholesale price per unit, rounded up to the next whole unit. A $200 minimum with a $30 wholesale unit price requires at least 7 units because 6 units would total only $180.

Use the MOQ tab above to test different order minimums. For mixed-product wholesale orders, a dollar minimum may be easier for retailers than requiring the same quantity of every SKU.

Wholesale Pricing and Retail Pricing Are Separate Decisions

Keystone pricing—retail at roughly twice wholesale—is common because it gives a retailer room for operating expenses, promotions, and profit. It is still only a starting point. Compare the resulting retail price with your direct-to-consumer price, your market, and the retailer's expected margin before publishing a line sheet.

For a broader pricing workflow, use the handmade pricing calculator, check your profit margin, or read the handmade pricing guide. You can also browse the full handmade business calculator collection.