How do you calculate wholesale margin?

Wholesale margin (gross margin) is calculated as: (Selling Price - Cost) / Selling Price x 100. For example, if a product costs $6.00 and sells for $10.00, the wholesale margin is ($10.00 - $6.00) / $10.00 = 40%. This is different from markup, which divides by cost instead of selling price.

What is the difference between margin and markup?

Margin is your profit as a percentage of selling price. Markup is your profit as a percentage of cost. A 50% markup on a $10 cost gives a $15 price and a 33.3% margin. A 50% margin on a $10 cost gives a $20 price and a 100% markup. Wholesale buyers and distributors think in margin. Many suppliers think in markup. Getting these confused is one of the most common pricing mistakes in CPG.

What is a good wholesale margin for food products?

Typical wholesale margins for food products range from 15% to 55% depending on the category. Conventional grocery runs 15-25%, specialty and gourmet products command 35-50%, and organic or natural products often achieve 40-55%. Your margin needs to cover not just COGS, but also distribution costs, slotting fees, trade spend, and spoilage.

How do I set a wholesale price from my retail price?

Most retailers apply a keystone markup (2x) or more to wholesale prices. To estimate your wholesale price, take your target retail price and divide by 2 to 2.5. If your target retail is $9.99, your wholesale price should be roughly $4.00-$5.00. Then work backwards to make sure that wholesale price still covers your COGS plus a healthy margin.

How does case quantity affect margins?

Larger case quantities usually lower per-unit costs through volume pricing and lower per-unit freight costs, but they also increase minimum order values for buyers. Standard wholesale case packs are typically 6, 12, or 24 units. Smaller case packs can open up more buyers (especially independent retailers) at slightly lower margins. The right case size balances your margins against buyer accessibility.

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Interactive Tool

Wholesale Margin Calculator.

Two-way calculator: enter your cost and desired margin to get a selling price, or enter your cost and selling price to find your real margin.

Calculation Mode

Unit Cost ($)

Your cost per individual unit

Case Quantity (units)

Units per case (6, 12, 24, etc.)

Desired Margin (%)

Target gross margin percentage

Retail Price ($) optional

Expected shelf price (for retail margin calc)

Enter your unit cost and desired margin to see results.

Benchmarks

Common wholesale margins by category.

Margin expectations vary significantly by food category. These ranges reflect typical wholesale distributor margins observed across the specialty food industry.

Frequently asked questions.

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Wholesale Margin Calculator.

Common wholesale margins by category.

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Wholesale Margin Calculator.

Common wholesale margins by category.

Frequently asked questions.

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Know your margins.
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