Calculator Inputs
Example Data Table
| Scenario | Unit Cost | Wholesale Price | Units | Discount % | Returns % | Net Sales | Net Margin % |
|---|---|---|---|---|---|---|---|
| Starter Order | $18.50 | $31.00 | 500 | 4.00 | 1.50 | $14,694.00 | 24.85% |
| Growth Order | $18.50 | $31.00 | 1,200 | 6.00 | 2.50 | $34,066.80 | 25.72% |
| Volume Push | $18.50 | $30.00 | 2,000 | 8.00 | 3.00 | $53,544.00 | 21.18% |
Formula Used
Wholesale Price × Units Ordered
(Base Revenue − Discount Amount) − Return Value
Net Sales − Cost of Goods Sold
Net Sales − COGS − Other Variable Costs − Commission − Shipping − Overhead − Fixed Costs
(Gross Profit ÷ Net Sales) × 100
(Net Profit ÷ Net Sales) × 100
((Wholesale Price − Unit Cost) ÷ Unit Cost) × 100
(Shipping + Overhead + Fixed Costs) ÷ Contribution per Unit
How to Use This Calculator
- Enter the product name, currency symbol, unit cost, and wholesale selling price.
- Add the expected order quantity for the wholesale batch.
- Fill in discount, return, tax, and commission percentages if they apply.
- Add shipping, overhead, fixed costs, and any extra variable cost per unit.
- Set a target net margin if you want the calculator to estimate a required selling price.
- Click Calculate Margin to show the results above the form.
- Review net sales, profit, markup, break-even units, and target pricing guidance.
- Use the CSV and PDF buttons to export the result summary for reporting or client review.
FAQs
1. What does wholesale margin mean?
Wholesale margin shows how much of your net sales remains after direct and operating costs. It helps you see whether your pricing still supports profit after discounts, returns, commission, and batch-level expenses.
2. What is the difference between margin and markup?
Margin is profit divided by sales. Markup is price minus cost divided by cost. They are related, but they answer different pricing questions and always produce different percentages.
3. Why does the calculator separate tax collected?
Sales tax is usually collected on behalf of a tax authority, not kept as operating profit. Showing it separately gives a cleaner picture of commercial performance and avoids overstating margin.
4. Why do returns reduce margin so quickly?
Returns reduce realized sales, while many costs remain already committed. You may still absorb production, handling, and shipping costs, so even a modest return rate can materially cut net profit.
5. What is contribution per unit?
Contribution per unit is the amount left from each ordered unit after variable expenses. It supports break-even analysis because those remaining funds are what cover shipping, overhead, and fixed costs.
6. Can I use this for distributor pricing decisions?
Yes. It is useful for comparing tiered wholesale offers, volume discounts, and distributor commissions. You can test several scenarios quickly and identify the price floor needed to preserve target profitability.
7. What does the required target price result mean?
That value estimates the minimum wholesale price per unit needed to reach your selected target net margin under the current quantity, discount, returns, commission, and cost assumptions.
8. Why might break-even units be unavailable?
If contribution per unit is zero or negative, each additional unit fails to cover fixed costs. In that case, the current pricing structure cannot break even without changing price, cost, or discounts.