Calculate a wholesale base price from unit cost and a target gross margin, then apply discounts for quantity tiers. Base price equals cost ÷ (1 − margin ÷ 100). Discounts reduce that base price and therefore reduce the resulting margin unless your unit cost also falls.
lightbulb When to use this tool
- check_circle Prepare a simple wholesale quote with volume discounts from a common base price.
- check_circle Check whether a proposed quantity discount still leaves enough contribution toward costs that are not entered in the tool.
Inputs and results
Input: Unit cost, a base gross-margin percentage below 100%, and tier minimum quantities with discounts from the base selling price.
Output: Base selling price and a tier table showing quantity ranges, discounted unit prices and the order value at each tier's minimum quantity.
How it works
Enter the unit cost you intend to use for pricing. Include relevant per-unit costs consistently.
Enter your target base gross margin, below 100%. This is a percentage of selling price, not a markup on cost.
Add each tier's minimum quantity and percentage discount. The discount is applied to the calculated base price.
Review unit prices and minimum-order totals. Independently check remaining gross margin as (discounted price − unit cost) ÷ discounted price × 100.
Recheck shipping, fees, payment terms and whether larger orders change your costs before sending a quote.
Examples
science A 10% discount does not leave a 10% margin
With unit cost 80 and base margin 20%, base price is 100. A tier with minimum quantity 100 and discount 10% has unit price 90 and minimum-order total 9,000. Gross profit is 10 per unit, so the remaining margin is 10 ÷ 90 = 11.11%.
science A deep tier discount can create a loss
Unit cost 60 and base margin 40% also give base price 100. A 50% tier discount reduces price to 50. At a minimum quantity of 200, order revenue is 10,000 against product cost of 12,000: a loss of 2,000 before any other costs.
Limitations
Tier discounts apply to selling price, not cost, and the table does not calculate the remaining margin. Tax, shipping, payment fees, credit costs and order-specific overhead are not added automatically. The current monetary display defaults to INR (₹); use one consistent currency. Enter valid discounts from 0% to 100% and a base margin below 100%.
Frequently Asked Questions
Does a quantity discount preserve my chosen margin? expand_more
Is wholesale margin the same as markup? expand_more
What does the minimum-order total mean? expand_more
What discount reaches the cost-only break-even price? expand_more
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