Wholesale order gross profit
A straightforward high-intent calculator for brands selling B2B wholesale.
Example scenario
A specialty beverage brand accepts a 2,400-case wholesale PO from an independent grocery distributor at an $18.50 wholesale unit price net of standard bill-back allowances while finance loads a $9.20 fully landed unit cost after co-manufacturing, inbound freight to the 3PL, and packaging compliance labels. Gross profit on the PO lands near $22,320 (2,400 × $9.30 contribution margin per unit)—still before outbound freight allowances, broker commissions, early-pay discounts, or slotting fees modeled downstream.
Wholesale order gross profit
Units x (price - unit cost)
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How to estimate wholesale order gross profit
- Type confirmed purchase-order units—cases × units per case—after retailer acceptance letters lock quantities subject to fill-rate caps.
- Input wholesale unit price net of standard off-invoice allowances your retailer contract lists so numerator reflects cash effective sell.
- Load landed unit cost from weighed BOM plus inbound freight and duty allocations—exclude outbound parcel labels priced separately on FOB destination deals.
- Compare gross profit dollars against hurdle margin targets by channel—stress-test discounts before approving incremental promotions that shrink contribution.
Wholesale margin planning context
- Keystone versus category norms
- Retail keystone implies roughly half-off MSRP wholesale anchors—actual categories diverge wildly by velocity and retailer power dynamics, so benchmark against internal historical invoices instead of folklore.
- Landed cost completeness
- Finance-ready COGS bundles supplier invoices, duty, and inbound logistics—exclude outbound customer freight unless you intentionally burden ship-from cost inside unit inputs.
- Trade spend leakage
- Billbacks, spoils allowances, and scan promotions erode realized wholesale price—adjust wholesaleUnitPrice to net expected trade deductions when quoting ROM PO profit.
Best use cases
- Wholesale brands validating large PO profitability
- Sales teams stress-testing discount requests
- Finance teams planning quarterly wholesale targets
FAQs
Should wholesale unit price include predicted distributor markdown funding?
Net your percentage off against expected scan-down participation—when retailers honor vendor-funded discounts, lower effective price inputs instead of surprising finance later.
How do payment terms like 2/10 net 30 affect gross profit?
Cash discounts belong below gross profit—either reduce recognized revenue or model financing cost separately because timing dilutes net margin without changing manufacturing COGS.
What if pallets mix SKUs with different manufacturing costs?
Split PO lines or compute blended weighted-average unit cost so margin math reflects each SKU’s BOM rather than portfolio averages that hide loss leaders.
Does gross profit cover broker or sales commissions?
No—those subtract in SG&A; keep this output as product-level contribution before channel-specific selling expenses unless you fold commissions into variable COGS by policy.
Glossary
Gross profit
Revenue minus direct product cost before overhead and operating expenses.
Landed unit cost
Per-unit cost including product cost and inbound logistics to inventory.
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Category: Wholesale trade economicsTopics: Wholesale gross profit, Unit contribution margin, Purchase order sizing
Last reviewed: 2026-05-07
Reviewed by: Calclet Growth Team