How to Calculate Wholesale Price
Wholesale price is the discounted price you charge retailers or bulk buyers, set below your direct-to-consumer (DTC) retail price. To calculate wholesale price, multiply retail by one minus the discount:
Wholesale Price = Retail Price × (1 − Discount %)
For example, a $60 retail product with a 45% wholesale discount: $60 × (1 − 0.45) = $33.00 wholesale price. The retailer pays $33 and sells at or near $60, earning a margin on the difference.
A wholesale discount only works if the discounted price still covers your product cost, shipping, and payment fees. Compare those costs with your expected order size before committing to a discount or MOQ.
Wholesale Price Formulas
Wholesale Price = Retail Price × (1 − Wholesale Discount ÷ 100)
Transaction Fee per Unit = Wholesale Price × Transaction Fee Rate
Profit per Unit = Wholesale Price − Product Cost − Shipping per Unit − Transaction Fee per Unit
Minimum Order Value = Wholesale Price × MOQ
Monthly Revenue = Minimum Order Value × Monthly Orders
Monthly Profit = Profit per Unit × MOQ × Monthly Orders
The last two formulas assume every wholesale order contains exactly the MOQ. Larger orders increase the projections; returns, taxes, discounts, and other costs can reduce actual results.
Retailers often use keystone pricing, which sets retail price at twice the wholesale price. That gives the retailer a 50% gross margin before its own expenses. Use the Keystone Pricing Calculator to compare that approach with custom pricing, or the Profit Margin Calculator to review broader product costs.
How to Use This Calculator
- Retail Price — Enter the price DTC customers pay in your Shopify store, before any applicable taxes.
- Product Cost — Enter your per-unit cost to source or manufacture the item.
- Wholesale Discount — Enter the percentage deducted from retail to set the wholesale price.
- MOQ — Enter the minimum number of units a buyer must order.
- Shipping per Unit — Estimate your shipping cost per item in a wholesale order. Bulk shipping may make this lower than DTC fulfillment.
- Transaction Fee — Enter the payment-processing percentage you expect to pay. Use the rate that applies to your wholesale payment method.
- Monthly Orders — Estimate how many wholesale orders you expect each month. The calculator uses this figure to project monthly revenue and profit.
Check whether the resulting per-unit profit remains positive after all entered costs, then compare the minimum order value with what your buyers are likely to spend.
Step-by-Step Example
Suppose a Shopify brand sells a ceramic table lamp DTC for $60, and offers retailers a 45% discount. It has a product cost of $18 per lamp, pays $1.75 shipping per unit, charges a 2.9% transaction fee, sets an MOQ of 12, and expects 8 wholesale orders per month.
| Calculation | Math | Result |
|---|---|---|
| Wholesale price | $60 × (1 − 0.45) | $33.00 per unit |
| Transaction fee | $33 × 0.029 | $0.957 per unit |
| Profit per unit | $33 − $18 − $1.75 − $0.957 | $12.293 (about $12.29) |
| Minimum order value | $33 × 12 | $396 |
| Profit per MOQ order | $12.293 × 12 | $147.516 (about $147.52) |
| Monthly revenue | $396 × 8 | $3,168 |
| Monthly profit | $147.516 × 8 | $1,180.128 (about $1,180.13) |
The unrounded fee and profit figures are used for the order and monthly calculations; displayed amounts are rounded for readability. This estimate excludes costs not entered in the calculator, such as packaging, labor, returns, and overhead.
Choosing a Wholesale Discount and MOQ
A 50% discount from retail is commonly called keystone pricing in reverse: the retailer buys at half the retail price, then sells at twice its cost. It is a starting point, not a requirement. If your costs leave too little profit at that discount, test a smaller discount, reduce costs, or offer a different product configuration.
| Product type | Wholesale discount to test | What to check |
|---|---|---|
| Apparel and accessories | 40–50% | Allow for size or color assortments and potential markdowns |
| Home décor and gifts | 40–50% | Include breakage, packaging, and bulky shipping |
| Beauty and personal care | 40–50% | Account for sampling, packaging, and product shelf life |
| Specialty food | 30–50% | Include spoilage, short shelf life, and handling requirements |
These are planning ranges, not guaranteed industry averages. Your achievable discount depends on your costs, retailer expectations, and the margin the retailer needs. The U.S. Small Business Administration’s pricing guidance recommends considering costs and market conditions when setting prices.
MOQ is a tradeoff: a higher minimum can make order preparation and fulfillment more worthwhile, but may deter smaller retailers. Compare the order value at several quantities before you commit to a threshold. For volume breaks, use the Tiered Pricing Calculator.
6 Tips for Setting Wholesale Prices
- Test a smaller discount: Change your discount from 45% to 40% and compare the increase in per-unit profit with the retailer’s reduced margin.
- Try a lower MOQ: Change a 24-unit minimum to 12 units and see whether the smaller order value feels easier for a new stockist to commit to.
- Include packaging costs: Add the per-unit cost of cartons, inserts, or protective materials to your product-cost estimate before treating the displayed profit as available earnings.
- Compare payment methods: Test your card-processing rate against the fee for bank transfer or invoicing, if you offer those methods; lower processing costs can change your profit without changing the wholesale price.
- Set order minimums deliberately: Compare a minimum spend with a unit-based MOQ. A spend minimum gives buyers flexibility across products, while a unit minimum is easier to apply to a single SKU.
- Review retail-price claims: If you advertise a “was” price, MSRP, or discount, make sure the reference price is genuine and supported. The FTC’s Guides Against Deceptive Pricing explain how advertised price comparisons can mislead customers.
- Build wholesale ordering into Shopify: Shopify’s B2B features and available capabilities vary by plan; wholesale apps can add pricing rules or gated access. Check current plan limits before choosing an app or separate storefront.
- Recheck projections with real orders: After a few months, replace your estimated monthly order count and shipping cost with actual figures from Shopify and your carrier invoices.
Frequently Asked Questions
What is wholesale pricing?
Wholesale pricing is the discounted price you offer retailers, boutiques, or other bulk buyers who purchase products for resale. The discount gives the buyer room to earn a margin, while your wholesale price still needs to cover your costs and leave a profit.
What is a good wholesale discount off retail?
A discount of 40–50% off retail is a common starting range, but the right amount depends on your costs and the retailer’s resale margin. Before agreeing to a discount, check whether the resulting price covers product cost, shipping, payment fees, and the profit you need.
What is MOQ in wholesale?
MOQ means minimum order quantity: the fewest units a buyer must purchase in one order. A larger MOQ can make fulfillment more worthwhile, but it may make your products harder for smaller retailers to trial.
How do I calculate my wholesale price?
Multiply your retail price by one minus the discount rate: wholesale price = retail price × (1 − discount percentage ÷ 100). Then subtract product cost, per-unit shipping, and payment fees to estimate profit per unit; a wholesale price by itself does not show whether the order is profitable.
Can I sell wholesale on Shopify?
Yes; Shopify offers B2B selling features, and wholesale apps can add options such as gated access or custom pricing. Available features vary by Shopify plan and app, so verify current plan limits before building your workflow.
About This Calculator
The Wholesale Price Calculator was built by Luis Dev Studio for Shopify merchants setting wholesale prices, MOQs, and order projections. For help with your store or pricing setup, contact us or explore our Shopify services.
Updated by Luis Gonzalez · May 6, 2026