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Structured methodology As of 2026-04-24

How Wholesale Pricing Calculator works

What the tool assumes, what data it pulls from, and what it cannot tell you.

Education · General business information, not legal, tax, or financial advice. Editorial standards Sponsor disclosure Corrections

1. Scope

Sets wholesale price, retail price, and MOQ revenue from unit cost, overhead, and a target margin using cost-plus, keystone (2×), or target-margin strategies. It does not model trade-discount ladders or channel-specific programmes.

2. Inputs and outputs

Inputs

  • unitCost number (currency)
  • overheadPerUnit number (currency) default: 0
  • strategy enum

    cost-plus | keystone | target-margin.

  • targetMargin percent default: 50

    Used when strategy = target-margin.

  • moq number default: 1

Outputs

  • wholesalePrice

    Per-unit wholesale price under the chosen strategy.

  • suggestedRetailPrice

    Keystone (2×) by default.

  • moqRevenue

    wholesalePrice × moq.

Engine source: src/lib/wholesale-pricing-calculator/engine.ts

3. Formula / scoring logic

cost_plus        : wholesale = (unit_cost + overhead) * (1 + markup)
keystone         : retail    = 2 * wholesale
target_margin    : wholesale = (unit_cost + overhead) / (1 - target_margin)

4. Assumptions

  • Overhead is fully allocated per unit — the user has already decided how to amortise fixed costs.
  • No tiered discount: MOQ price is the same as unit price.
  • Keystone doubling is a retail heuristic, not a law. Some categories use 2.5× or 3× markups.

5. Data sources

This tool relies on user inputs and standard arithmetic; no external benchmark data is bundled. When a question depends on an industry reference (for example, typical churn rates or hourly-wage medians), the linked adjacent tools cite their primary sources on their own methodology pages.

6. Known limitations

  • No industry-specific markup benchmarks bundled. Apparel, electronics, and food each follow different conventions.
  • Does not model distributor-level commissions, freight, or duty costs — build those into overhead before entry.

7. Reproducibility

Input
unitCost = $10, overhead = $2, strategy = target-margin, targetMargin = 50%, moq = 100.

Expected output
wholesalePrice = $24, suggestedRetail = $48, moqRevenue = $2,400.

8. Change log

  • 2026-04-24 methodology page first published.

Worked example

Run live against the same engine this site ships (/engines/wholesale-pricing-calculator.js). The inputs and outputs below are recomputed on every build and independently re-verified in CI — they are never hand-authored.

Input

tool
wholesale_pricing_calculator
unit_cost
12
overhead_per_unit
3
strategy
cost_plus
wholesale_markup_percent
100
retail_markup_percent
100
moq
50

Output

landedCost
15
wholesalePrice
30
keystoneRetailPrice
60
rrp
60
wholesaleMarginPercent
50
wholesaleMarkupPercent
100
retailMarginPercent
50
retailMarkupPercent
100
wholesaleToRetailMultiplier
4
moq
50
strategy
cost_plus
minimumViablePrice
15.15
moqRevenue
1500
moqGrossProfit
750
summaryLabel
Healthy — strong wholesale margin above 50%.

Frequently asked questions

What does the Wholesale Pricing Calculator calculate?
Sets wholesale price, retail price, and MOQ revenue from unit cost, overhead, and a target margin using cost-plus, keystone (2×), or target-margin strategies. It does not model trade-discount ladders or channel-specific programmes.
What inputs does the Wholesale Pricing Calculator need?
It takes 5 inputs: unitCost, overheadPerUnit (default 0), strategy, targetMargin (default 50), moq (default 1). Outputs returned: wholesalePrice, suggestedRetailPrice, moqRevenue.
What formula does the Wholesale Pricing Calculator use?
The exact computation is: cost_plus : wholesale = (unit_cost + overhead) * (1 + markup); keystone : retail = 2 * wholesale; target_margin : wholesale = (unit_cost + overhead) / (1 - target_margin)
Can I verify the Wholesale Pricing Calculator with a worked example?
Yes. With unitCost = $10, overhead = $2, strategy = target-margin, targetMargin = 50%, moq = 100. the tool returns wholesalePrice = $24, suggestedRetail = $48, moqRevenue = $2,400.
Does the Wholesale Pricing Calculator bundle any external benchmark data?
No. It runs standard arithmetic on the values you enter; no external benchmark dataset is bundled. Industry references, where relevant, are cited on the adjacent tools' methodology pages.
What can the Wholesale Pricing Calculator not tell me?
Known limitations: No industry-specific markup benchmarks bundled. Apparel, electronics, and food each follow different conventions. Does not model distributor-level commissions, freight, or duty costs — build those into overhead before entry.
Business planning estimates — not legal, tax, or accounting advice.