Free tools

Wholesale price calculator for food and drink brands

Put in what a unit costs you and either your wholesale price or the margin you want. This wholesale price calculator shows your margin, the store's margin and the suggested shelf price, with or without a distributor in between.

Updated 30 October 2026

Suggested shelf price, before tax5.71

Your profit per unit: 2.00
Your margin: 50%
Your markup: 100%
Store pays: 4.00
Store profit per unit: 1.71
Store margin: 30%
Keystone shelf price: 8.00

How to use the calculator

Everything is per unit and before tax, in your own currency. It is one of our free tools for brands getting ready to sell to stores, and nothing you type is saved.

Your costWhat one unit costs you to make and pack, packaging included. Leave out your own time only if you are sure you never want to pay for it.
Your wholesale price, or the margin you wantSwitch between the two. If you know your price, the calculator shows your margin. If you know the margin you need, it works out the price.
The store's marginThe share of the shelf price the store keeps. Ask the store; if you do not know, start at 30%, which is what many independent food and drink stores look for. Tick keystone to see the shelf at a 50% margin.
A distributor's marginLeave it at 0 if you sell direct. If a distributor sits in between, put in the share it keeps and watch the shelf price move.

Margin and markup are not the same

If a unit costs you 2 and you sell it to a store for 4, your markup is 100% and your margin is 50%. Margin is profit as a share of the selling price. Markup is profit as a share of the cost. Store owners talk in margin, so use margin when you talk to them, or your numbers will look better than they are.

A simple margin calculator works one step at a time. This one runs the whole chain: you, the distributor if there is one, and the store, so you can see where each unit of the shelf price goes.

Keystone pricing

Keystone pricing means the store doubles what it pays: buy at 4, sell at 8, a 50% margin. Many gift and specialty shops price this way. Food and drink stores often work on thinner margins, and many independents look for around 30%. Ask each store rather than guessing. The calculator shows the keystone shelf price next to yours, so you can see the gap before a buyer points it out.

Wholesale vs retail price

The wholesale price is what the store pays you. The retail price, or RRP, is what a shopper pays on the shelf. The gap between them is the store's margin, and it has to be big enough for the store to bother. Work back from a shelf price shoppers will accept for your category, take off the store's margin and any distributor's, and check what is left still covers your cost.

Leave room for a distributor

If a distributor sits between you and the store, it adds its own margin on top of your price. A product that works direct can stop working through a distributor if your wholesale price has no room in it. Run both cases before you settle on a price. Our guide on how to find a distributor covers when that day comes.

Tax and the shelf price

The calculator works before tax. In New Zealand, Australia and the UK the shelf price usually includes GST or VAT, so add it on top of the figure here. In the US and Canada, sales tax is usually added at the till, so the shelf price shown is the one on the label.

Before you email stores

Know three numbers: your wholesale price, the store's margin at the suggested shelf price, and your minimum order. A store owner will ask for them in the first reply, and a quick, clear answer reads as a brand that is ready to supply. Put them on a line sheet, and the headline ones on a sell sheet for tastings.

Do not put them in the first email, though. Keep that short and send the price list when the store asks. Our guide to getting your product into cafés explains why. When your numbers are ready, see who would stock you.

Questions brands ask

What is a good wholesale margin for a food or drink brand?

There is no single number. Work back from the shelf price stores can charge, the margin they need and any distributor margin, then check that what is left covers your costs and leaves room to grow.

How do I work out a wholesale price from a retail price?

Take the shelf price before tax and multiply it by one minus the store's margin. At a shelf price of 10 and a 30% store margin, the store pays 7.

What is keystone pricing?

The store sells at double what it paid, a 50% margin. It is common in gift and specialty retail; many food and drink stores work on less.

Should my wholesale price be half the retail price?

Only if the store works on keystone. Many food and drink stores take around 30%, so if you sell direct your wholesale price can sit nearer 70% of the shelf price before tax. Through a distributor it has to be lower.

Should I put my wholesale prices in my first email to a store?

No. Keep the first email short and plain, and send your price list when the store replies and asks for it.