What is a standard wholesale discount?

50% off retail is the most common convention for handmade and gift industry wholesale. Some categories (jewelry, apparel) use 40%; high-volume retailers and distributors may push for 60% or more.

How do I know if my wholesale price is profitable?

Compare your wholesale price to your total cost per unit. If the wholesale price is below total cost, you lose money on every unit. A healthy wholesale margin is 30%+; under 10% means a single return or damaged shipment can wipe out the order's profit.

Why is wholesale 50% off retail?

Because the wholesale buyer marks your product up roughly 2× to resell it at the retail price you set. The 50% gap is their margin for stocking, displaying, and selling your product to the end customer.

How do I raise my retail margin to support wholesale?

Either raise your retail price (most sellers underprice) or cut unit costs — bulk material orders, faster production, simplified packaging. Aim for a retail margin of 60–65% so a 50% wholesale discount still leaves a healthy profit.

Should I offer different wholesale tiers?

Only if larger orders genuinely lower your per-unit cost. Otherwise you're just shrinking your own margin. Many makers offer one wholesale price and a separate distributor or net-terms price for large strategic accounts.

Wholesale Pricing Calculator

Wholesale pricing is where most handmade and small-batch sellers lose money — they price for retail margins and then knock 50% off without checking whether anything is left. This calculator runs the full math: total cost per unit, suggested retail price, wholesale price, profit per unit, total profit on the order, your wholesale margin, and the break-even floor below which you'd lose money on every unit.

Last Updated: June 2026

New calculator — wholesale price, retail price, bulk profit, and minimum profitable pricing for makers and ecommerce sellers.

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Beginner friendly

Who this calculator helps

Handmade and craft sellers pitching boutiques, gift shops, and subscription boxes.
DTC brands building a B2B/wholesale channel alongside their retail Shopify store.
Small-batch food, beverage, and beauty brands selling to independent retailers.
Apparel and accessory designers preparing trade-show line sheets.
Print and stationery makers responding to a museum-store or bookstore order.

Material cost per unit ($)

Raw materials and components per unit.

Labor cost per unit ($)

Your time × hourly rate, divided by units made per hour.

Packaging cost per unit ($)

Boxes, tissue, labels, inserts.

Overhead cost per unit ($)

Rent, utilities, software, allocated per unit.

Desired retail profit margin (%)

Profit margin you want at full retail price.

Wholesale discount (%)

Standard wholesale is 40–50% off retail.

Order quantity

Units in this wholesale order.

Total cost per unit

$13.00

Materials + labor + packaging + overhead

Suggested retail price

$32.50

60% margin target

Wholesale price

$16.25

50% off retail

Wholesale profit per unit

$3.25

Price − total cost

Total wholesale profit

$325.00

100 units

Wholesale profit margin

20.0%

Profit ÷ wholesale price

Minimum profitable price

$13.00

Break-even floor

Wholesale margin: Tight margin (10–30%)

Common wholesale discount scenarios

Discount	Wholesale price	Profit / unit	Margin
40% off	$19.50	$6.50	33.3%
50% off	$16.25	$3.25	20.0%
60% off	$13.00	$0.00	0.0%

What this means for your wholesale deal

Each unit costs you $13.00 to produce. At a 50% wholesale discount off your $32.50 retail price, you'd sell each unit for $16.25 — that's $3.25 profit per unit at a 20.0% margin. Across 100 units this order would generate $325.00 in profit. Your absolute floor — the price below which you lose money — is $13.00.

You're making money, but the buffer is thin. A small cost increase, damaged shipment, or chargeback could wipe out the profit on this order.

All calculations are estimates based on average platform fees. Real profits may vary depending on category, ads, and shipping.

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How to use this calculator

Enter your numbers in each field above — the calculator updates instantly as you type, so there's nothing to submit.
Use your real figures when you have them, or sensible estimates while you're planning. If a field doesn't apply, leave it at zero.
Compare the results, then change one input at a time to see how each lever (price, cost, fees, volume) moves the outcome.

When to use this calculator

Before sending any line sheet — confirm the wholesale price covers cost AND leaves healthy margin.
When a buyer asks for a deeper discount on a large order, to verify the new price is still profitable.
When raising retail prices — wholesale needs to move in lockstep or the margin compresses.
When evaluating a net-30 or net-60 buyer — bake an effective discount for the cash-flow cost.
Pair with the Profit Margin Calculator to confirm your retail margin can support a 50% wholesale discount.

Formula

Total cost per unit = Material + Labor + Packaging + Overhead · Suggested retail price = Total cost ÷ (1 − Retail margin %) · Wholesale price = Retail price × (1 − Wholesale discount %) · Wholesale profit per unit = Wholesale price − Total cost · Total wholesale profit = Profit per unit × Order quantity · Wholesale margin % = (Profit per unit ÷ Wholesale price) × 100 · Minimum profitable price = Total cost per unit

Worked example

Material $6, labor $4, packaging $1.50, overhead $1.50, 60% retail margin, 50% wholesale discount, order of 100 units.

Total cost per unit = 6 + 4 + 1.50 + 1.50 = $13
Suggested retail price = 13 ÷ (1 − 0.60) = 13 ÷ 0.40 = $32.50
Wholesale price = 32.50 × (1 − 0.50) = $16.25
Wholesale profit per unit = 16.25 − 13 = $3.25
Total wholesale profit = 3.25 × 100 = $325
Wholesale margin = 3.25 ÷ 16.25 × 100 = 20%
Minimum profitable price = $13

Answer: $16.25 wholesale · $3.25 profit/unit · $325 on the order · 20% margin

More worked examples

Premium candle line: material $9, labor $5, packaging $2.50, overhead $2.50, 65% retail margin, 50% wholesale, 50-unit order.

Total cost = 19.00
Retail = 19 ÷ (1 − 0.65) = 19 ÷ 0.35 ≈ $54.29
Wholesale = 54.29 × 0.50 = $27.14
Profit/unit = 27.14 − 19 = $8.14 · margin = 30%
Total profit = 8.14 × 50 = $407

Answer: $8.14/unit · 30% wholesale margin — healthy when retail is set at 65%+.

Low-cost greeting cards: material $0.80, labor $0.50, packaging $0.20, overhead $0.30, 75% retail margin, 50% wholesale, 200-unit order.

Total cost = $1.80
Retail = 1.80 ÷ 0.25 = $7.20
Wholesale = 7.20 × 0.50 = $3.60
Profit/unit = 3.60 − 1.80 = $1.80 · margin = 50%
Total = 1.80 × 200 = $360

Answer: $1.80/unit · 50% wholesale margin — high-margin low-cost goods absorb the 50% discount easily.

Distributor ask at 60% off: same candle (cost $19, retail $54.29), 60% wholesale discount, 200 units.

Wholesale = 54.29 × 0.40 = $21.72
Profit/unit = 21.72 − 19 = $2.72 · margin ≈ 12.5%
Total = 2.72 × 200 = $544

Answer: $2.72/unit at 60% off — accept only if the volume meaningfully lowers material cost; otherwise too thin.

How it works

Why wholesale math breaks: most sellers price their products for a retail margin of 40–50% — enough to feel comfortable, not enough to survive a 50% wholesale discount. Wholesale buyers (boutiques, gift shops, subscription boxes) expect to mark your product up 2× when they resell it, which is where the standard 50%-off-retail convention comes from. If your retail price doesn't bake in enough margin, the wholesale price falls below cost.

The two-step rule: to land at a healthy wholesale margin (30%+), your retail margin usually needs to be at least 60–65%. If your retail margin is 50%, a 50% wholesale discount leaves you exactly at break-even — every sale at that price loses money once you account for any return or damage.

Overhead is the silent killer: most makers calculate materials and labor but skip overhead — rent, utilities, software, marketing, packaging supplies. Add those into your per-unit cost (divide monthly overhead by units produced per month) or your wholesale price will quietly subsidize the business.

MOQ leverage: wholesale buyers expect price breaks at higher quantities, but you should ONLY discount further if larger orders genuinely reduce your per-unit cost (bulk material discounts, batch labor savings). Don't drop the price just because the order is bigger — bigger orders at thinner margins can lose more money, not less.

Expert tips

Aim for at least a 65% retail margin if you plan to sell wholesale — anything lower collapses when the 50% discount is applied.
Set a minimum order quantity (MOQ) that justifies the cost of packing, invoicing, and follow-up — 12–24 units is typical for makers, 50–100 for established brands.
Treat net-30/net-60 buyers as effectively discounted — 30 days of cash held = roughly 1–2% added cost; bake into the wholesale price or require a deposit.
Don't drop the price for bigger orders unless your per-unit cost actually drops. Volume discounts should be tied to real batch-cost savings, not buyer pressure.
Keep a clear MAP (minimum advertised price) policy so wholesale buyers don't undercut your own retail and devalue the brand.

How to interpret your results

Dollar values are shown per sale, per order, or per item unless a result is explicitly labelled monthly, weekly, or daily.
Percentages (margin, ROI, conversion rate) are easier to compare across products and price points than raw dollars — use them when you benchmark.
A positive result means you're ahead after the costs and fees you entered. A negative result means the current numbers don't work — change a lever (raise price, cut a cost, lower ad spend) and recalculate.
Treat the output as a planning estimate, not a guarantee. Fees, taxes, and conversion rates shift over time — re-run the numbers whenever a key input changes.

Limitations

Doesn't model freight, customs, or fulfillment-to-buyer shipping costs — add those into Other.
Doesn't account for net-30/net-60 cash-flow cost — adjust manually if buyers pay slowly.
Doesn't include returns, damages, or defective allowances; budget 2–5%.
Single-tier pricing — for tiered MOQ pricing (50/100/250), run the calculator at each tier.
Sales tax and resale-certificate exemptions aren't modeled.

Common mistakes

Pricing for retail at a 40–50% margin, then taking 50% off — there's nothing left after costs.
Forgetting overhead, packaging, and labor on top of raw material cost.
Discounting deeper for bigger orders without verifying that your per-unit cost actually goes down.
Setting a wholesale price below the minimum profitable price (total cost) just to win the account.
Not factoring in net-30 or net-60 payment terms — wholesale buyers often pay slowly, which is a real cash flow cost.

Go deeper with plain-English guides on the same topic.

FAQ

What is a standard wholesale discount?: 50% off retail is the most common convention for handmade and gift industry wholesale. Some categories (jewelry, apparel) use 40%; high-volume retailers and distributors may push for 60% or more.
How do I know if my wholesale price is profitable?: Compare your wholesale price to your total cost per unit. If the wholesale price is below total cost, you lose money on every unit. A healthy wholesale margin is 30%+; under 10% means a single return or damaged shipment can wipe out the order's profit.
Why is wholesale 50% off retail?: Because the wholesale buyer marks your product up roughly 2× to resell it at the retail price you set. The 50% gap is their margin for stocking, displaying, and selling your product to the end customer.
How do I raise my retail margin to support wholesale?: Either raise your retail price (most sellers underprice) or cut unit costs — bulk material orders, faster production, simplified packaging. Aim for a retail margin of 60–65% so a 50% wholesale discount still leaves a healthy profit.
Should I offer different wholesale tiers?: Only if larger orders genuinely lower your per-unit cost. Otherwise you're just shrinking your own margin. Many makers offer one wholesale price and a separate distributor or net-terms price for large strategic accounts.

Why trust this calculator?

This tool uses standard mathematical formulas and commonly accepted calculation methods, shown openly in the Formula section above so you can verify the math yourself. Results are estimates based on the information you enter and do not account for every individual circumstance. For important financial, tax, legal, medical, or business decisions, please double-check with a qualified professional before acting on the numbers.

Keep going

One calculator rarely tells the full story. Pair this one with a related tool below to pressure-test your numbers from a different angle, or browse Work & Money Calculators for more in the same category.

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