Enter your distributor pricing inputs
Sample distributor pricing outcomes
| Example | Landed Cost | Markup % | Final Selling Price | Gross Margin | Profit Per Unit |
|---|---|---|---|---|---|
| Starter Supply Pack | $112.35 | 25.00% | $136.22 | 17.53% | $23.87 |
| Creative Agency Bundle | $193.98 | 35.00% | $248.78 | 22.03% | $54.80 |
| Premium Reseller Order | $300.24 | 42.00% | $396.50 | 24.28% | $96.26 |
How the calculator works
Subtotal Before Tax = Acquisition Cost + Packaging Cost + Shipping Cost + Service Fee + Overhead
Tax Cost = Subtotal Before Tax × Tax Rate
Landed Cost = Subtotal Before Tax + Tax Cost
Markup Amount = Landed Cost × Markup Percentage
Pre-Discount Price = Landed Cost + Markup Amount
Discount Amount = Pre-Discount Price × Discount Percentage
Final Selling Price = Pre-Discount Price − Discount Amount
Gross Profit Per Unit = Final Selling Price − Landed Cost
Gross Margin = Gross Profit Per Unit ÷ Final Selling Price × 100
Total Profit = Gross Profit Per Unit × Quantity
Simple workflow for freelance distributor quotes
- Choose your working currency first.
- Enter acquisition, packaging, shipping, service, and overhead costs.
- Add the tax rate applied to total cost inputs.
- Set your desired markup percentage.
- Enter any client discount you plan to offer.
- Add quantity to estimate batch revenue and profit.
- Use competitor price to compare your quote position.
- Use target profit to estimate required sales units.
- Press Calculate Markup to view results and graphs.
- Download the result table as CSV or PDF.
Common questions about distributor markup
1. What does distributor markup mean?
Distributor markup is the extra amount added above landed cost. It helps cover business risk, negotiation room, and profit. This calculator converts that markup into selling price, margin, and total profit so freelancers can quote more confidently.
2. What is the difference between markup and margin?
Markup is based on cost. Margin is based on selling price. A 30% markup does not equal a 30% margin. This page calculates both so you can avoid underpricing service or supply deals.
3. Why should I include packaging and shipping costs?
Ignoring packaging or shipping hides true landed cost. That creates weak quotes and smaller profits. Adding every per-unit expense gives a more realistic selling price and protects your freelance income.
4. Should discounts be applied before or after markup?
Most pricing teams add markup first, then apply any negotiated discount. That method shows the original quote value clearly and reveals how much margin is lost during discounting.
5. How does competitor pricing help?
Competitor pricing gives context. It shows whether your quote is higher, lower, or near the market. That helps you explain premium pricing or decide whether to revise markup, costs, or discounts.
6. What if my profit becomes negative?
Negative profit means your final selling price is below landed cost. You should raise markup, reduce discounts, trim costs, or renegotiate the project scope before sending the final quote.
7. Can this calculator help with volume deals?
Yes. Quantity multiplies cost, revenue, and profit. That makes it useful for reseller bundles, agency supply packs, repeat client orders, and bulk freelance sourcing work.
8. Why is a target profit input useful?
Target profit helps you reverse the pricing plan. Instead of guessing, you can see how many units you need to sell at your current profit per unit to reach a defined earnings goal.