Wholesale and Retail Tier Margin Calculator

Method and assumptions

Wholesale price = suggested retail price × (1 − wholesale discount). Retailer gross margin = (retail price − wholesale price) ÷ retail price. Maker gross dollars = wholesale price − maker unit cost; maker gross margin divides those dollars by wholesale price. A negative wholesale gap means the chosen discount gives the retailer less than the target margin.

Worked example

At $30 retail, a 40% wholesale discount produces an $18 wholesale price. The retailer's margin is 40%; a 35% target allows a $19.50 wholesale price. With $12 maker cost, maker gross dollars are $6 and maker gross margin is 33.33%.

How to use the result

Review both margin rows before agreeing a tier. These are gross unit economics only; selling expenses, freight, returns, payment terms, and fixed operating costs are not assigned to either party.

Input meanings and limits

• Maker's unit cost: Enter the cost you want covered before the maker's gross margin.
• Suggested retail price: The shelf price used to compare the retail tier.
• Wholesale discount from retail price: This defines the maker's price to the retailer.
• Retailer's target gross margin: Used to calculate the minimum wholesale price consistent with that margin.

Inputs accept finite, nonnegative values in the displayed ranges; percentages are bounded to 0–100% (with 99.99% maximum where division by the remaining share is used), and whole-unit or month fields require integers. Currency figures are shown in USD for convenience; enter values in one consistent currency. This is a planning worksheet, not financial, legal, tax, or accounting advice.

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