Your numbers
Explore the numbers
Examples, chart, and saved snapshots
Start with a realistic example, adjust the inputs, or save your numbers before experimenting.
A 12 cost sold at 18 and at 32
The unit costs 12. Wholesale sells it for 18. Retail sells it for 32. You expect 400 wholesale units and 150 retail units in the period.
Unit cost: 25% lower
Change unit cost to 9 while keeping the other example values the same.
Unit cost: 25% higher
Change unit cost to 15 while keeping the other example values the same.
Interactive chart
See what changes the result
This result is categorical, so compare the calculated values in the examples and snapshots instead.
The chart changes one input while holding all other current values steady. It is a sensitivity view, not a forecast.
Browser snapshots
Freeze these values
Save the current calculation, experiment freely, and restore it later.
No saved snapshots for this calculator yet.
Compare snapshots
What changed?
Save one more snapshot to compare plans.
Saved only in this browser. Nothing is uploaded, and clearing browser data removes the snapshots.
Quick answer
What does the Wholesale vs retail margin calculate?
What gross margin does one unit cost leave at wholesale and at retail? This calculator uses unit cost, wholesale price, retail price, wholesale units, and retail units to estimate margin on each channel immediately in your browser.
With the values currently entered, the result is 33.3% — wholesale gross margin. It also shows retail gross margin, wholesale profit per unit, retail profit per unit, blended gross profit, and blended gross margin.
How to use the Wholesale vs retail margin
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Unit cost
- Wholesale price
- Retail price
- Wholesale units — entered in units
- Retail units — entered in units
Wholesale vs retail margin formula
Channel margin = (price − unit cost) ÷ price. Blended gross profit = wholesale profit + retail profit. Blended margin = blended profit ÷ blended receipts.
Assumptions
- IRS Publication 334 figures gross profit as receipts minus cost of goods sold, then tests that profit divided by receipts. Each channel uses the same unit cost.
- Freight, returns, commissions, and marketplace fees stay out unless you fold them into unit cost or the prices.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Chapter 7 figures gross profit as net receipts minus cost of goods sold. It then tests accuracy as that profit divided by net receipts, compared with the markup policy.
Beginners’ guide to financial statementsUS Securities and Exchange CommissionScope: General investor education; US sourceWalks an income statement from sales to cost of sales, then to gross profit, operating expenses, and the bottom-line net earnings.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Wholesale vs retail margin example and edge cases
The same unit can leave a different gross margin at each price. IRS Publication 334 figures gross profit as receipts minus cost of goods sold, then divides that profit by receipts. Run that test at the wholesale price and again at the retail price.
Example: A 12 cost sold at 18 and at 32
The unit costs 12. Wholesale sells it for 18. Retail sells it for 32. You expect 400 wholesale units and 150 retail units in the period.
- Unit cost
- 12
- Wholesale price
- 18
- Retail price
- 32
- Wholesale units
- 400 units
- Retail units
- 150 units
Calculated result33.3%wholesale gross margin
Wholesale margin is 33.3 percent, or 6 a unit. Retail margin is 62.5 percent, or 20 a unit. Together gross profit is 5,400 on 12,000 of receipts, a 45 percent blended margin.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the wholesale margin first. The retail margin and the blended profit show whether the mix still pays.
- A wide retail margin can sit next to a wholesale price that barely clears cost. Check both percents before you add volume on the thin side.
Edge cases worth checking
Freight to the retailer is still a cost
If you pay freight so the wholesale order can ship, add it to unit cost. Otherwise the 6 of wholesale profit is not cash you keep.
A retail return is not a wholesale unit
Retail units should be units you expect to keep sold. A return removes the receipt. The wholesale count should stay the units that customer keeps.
What changes the result most
Unit cost
Use a current amount for unit cost. Include fees or recurring costs that belong in the same figure.
Wholesale price
Use a current amount for wholesale price. Include fees or recurring costs that belong in the same figure.
Retail price
Use a current amount for retail price. Include fees or recurring costs that belong in the same figure.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Unit cost: 25% lower
950%wholesale gross margin
Unit cost: 25% higher
1516.7%wholesale gross margin
Wholesale price: 25% higher
2347.8%wholesale gross margin
Common mistakes
Check unit cost
IRS Publication 334 figures gross profit as receipts minus cost of goods sold, then tests that profit divided by receipts. Each channel uses the same unit cost. Make sure this matches the number you enter.
Keep retail units consistent
Freight, returns, commissions, and marketplace fees stay out unless you fold them into unit cost or the prices. Use the same units and time period throughout the calculation.
Do not rely on one wholesale vs retail margin scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What gross margin does one unit cost leave at wholesale and at retail?
It does not replace a quote, contract, accountant, or local employment guidance.