Pricing for two businesses
Wholesale pricing needs to leave room for both the maker and the retailer. A price that meets one party’s target can still fail the other’s economics. This calculator starts with product cost, allocated overhead and freight per unit, then includes commission and a quantity-order discount. Forward mode calculates a wholesale list price and suggested retail price. Reverse mode starts from a target MSRP and tests the wholesale invoice that the retailer’s margin can support.
The formula
Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.
A $25 total unit cost and a 40% maker margin require $41.67 maker net revenue. At 10% commission and 5% MOQ discount, the wholesale list is approximately $48.73. The retailer invoice is $46.30. A retailer seeking 50% margin needs an MSRP near $92.59. A $100 target MSRP leaves a feasible invoice corridor from $46.30 to $50.00.
Maker margin uses net revenue
The maker margin in this model is profit divided by maker revenue after commission. This definition matters because using the retailer invoice as the denominator would give a different percentage. The required maker net revenue is total unit cost divided by one minus the target maker margin. Commission is then reversed to find the minimum invoice, and the MOQ discount is reversed to find the list price. Keep these stages distinct when comparing the output with a contract or price sheet.
List price, invoice and MSRP
Wholesale list price is the pre-discount quotation. Retailer invoice is the price after the selected quantity discount. Maker net revenue deducts commission from that invoice. Suggested MSRP divides retailer invoice by one minus the retailer margin goal. The retailer calculation does not include its own transaction fees, delivery expenses or overhead, so this is a gross product-margin comparison. MSRP is a planning price, not a claim about what the market will pay or how a retailer must price.
Find the pricing corridor
A target MSRP and retailer margin define the highest wholesale invoice the retailer can support. The maker’s unit cost, target margin and commission define the lowest invoice the maker can support. When the maximum is at least the minimum, the interval between them is a feasible mathematical corridor. When the maximum is lower, the displayed gap is negative. The targets do not fit together at that MSRP; review cost structure, commission, retail price or margin expectations.
Reverse pricing and minimum order quantity
Reverse mode uses the target MSRP to find the retailer’s maximum invoice and the resulting maker margin at that invoice. It does not silently force the maker target to be met. MOQ order value and maker profit multiply the per-unit amounts by quantity. This assumes unit costs and commission are stable throughout the order. If a larger quantity earns a supplier discount or requires extra production capacity, update the relevant unit costs rather than assuming quantity alone improves margin.
Avoid common wholesale comparisons
Margin and markup use different denominators, so a fifty-percent retailer margin is not a fifty-percent markup on purchase cost. Likewise, a commission and a discount are applied sequentially here rather than added into one percentage. Do not enter shipping both inside product cost and again as freight per unit. This tool does not model payment terms, bad debt, returns agreements or working-capital timing. Review those commercial terms separately and use Landed Cost when imported inventory is the starting point for your unit cost.
Method and reference sources
Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.
- SBA — Break-even pointContribution, variable costs and fixed-cost break-even context; tool-specific extensions are explained above.
Frequently asked questions
Why are the wholesale list and retailer invoice different?
The list price is before the modeled MOQ discount. The retailer invoice reflects that discount; commission then affects the amount retained by the maker.
What is a worked example for Wholesale Pricing?
A $25 total unit cost and a 40% maker margin require $41.67 maker net revenue. At 10% commission and 5% MOQ discount, the wholesale list is approximately $48.73. The retailer invoice is $46.30. A retailer seeking 50% margin needs an MSRP near $92.59. A $100 target MSRP leaves a feasible invoice corridor from $46.30 to $50.00.