Business
Wholesale Order Profitability Calculator
Reconcile gross invoice value to expected net revenue and order profit, calculate profit per unit and margin, isolate unit contribution, and solve the order quantity needed to cover order-level costs.
Gross invoice revenue-
Discount and return allowance-
Expected net order revenue-
Product cost-
Pick and pack cost-
Commission and payment fees-
Expected order profit-
Profit per ordered unit-
Profit margin on net revenue-
Unit contribution before freight and administration-
Units required to cover freight and administration-
Decision view
Wholesale carton economics and break-even order scale
Wholesale carton economics and break-even order scaleInvoice value steps through allowance, goods, handling, freight, fees, and administration before landing at live order profit.
Exact scenario comparisonUnits in wholesale order changes while all other entered assumptions remain constant.
| Units in wholesale order | Gross invoice revenue | Discount and return allowance | Expected net order revenue | Product cost | Pick and pack cost | Commission and payment fees | Expected order profit | Profit per ordered unit | Profit margin on net revenue | Unit contribution before freight and administration | Units required to cover freight and administration |
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How to use Wholesale Order Profitability Calculator
- Enter order quantity, wholesale price, product cost, and pick-and-pack cost.
- Enter expected allowance, commission, and payment rates on the defined net-revenue basis.
- Add freight and fixed administration, then compare order size with break-even units.
Calculator guide
Understanding Wholesale Order Profitability Calculator
Wholesale order profit depends on more than the spread between wholesale price and product cost. Allowances, pick and pack, commission, payment fees, freight, and order administration consume different parts of the invoice.
Detailed calculation process
Detailed wholesale order-profit calculation
The default order contains 600 units sold at $24 each with a 3% allowance.
General formula: R_g=QpA=R_gaR_n=R_g-AC=Qc+Qh+R_n(s+f)+F+Oprofit=R_n-Cu=p(1-a)-c-h-p(1-a)(s+f)Q_BE=ceil[(F+O)/u] Invoice reductions occur before revenue-based fees. Product and handling costs vary by unit, while freight and administration are fixed for this order.
What each symbol means
Worked substitution with the default inputs
All waterfall deductions reconcile exactly to $3,919.69 order profit, and 143 units cover the entered freight and administration under constant unit economics.
Worked situations
Practical examples
- A 600-unit order at $24 produces a $14,400 invoice; a 3% allowance reduces expected net revenue to $13,968.
- After all entered costs, the default order produces $3,919.69 profit, or $6.53 per unit.
Better inputs
Useful tips
- Use landed product cost when inbound freight and duty belong to inventory.
- Estimate returns and discounts from the same customer and channel when possible.
- Quote freight for the actual pallet, carton, accessorial, and destination profile.
Before relying on the result
Limitations and common mistakes
- Inventory carrying cost, bad debt, taxes, foreign exchange, rebates, and capacity constraints are excluded.
- Percentage fees are applied to expected net revenue.
- Break-even assumes unit economics stay constant at other order sizes.
Reference
Key terms
- Allowance
- Expected reduction for discounts, returns, shortages, or credits.
- Unit contribution
- Net unit revenue less costs that vary with each unit, before freight and administration.
- Order-level cost
- Freight and administration incurred once for the order.
Important note
Confirm the Incoterm, freight responsibility, returns agreement, commission base, and payment timing in the actual wholesale contract.
Frequently asked questions
Why calculate fees on net revenue?
That is the stated default basis. Change the input rates to effective percentages if the provider uses a different fee base.
Does a bigger order always improve margin?
It spreads fixed order cost, but inventory risk, price tiers, and freight behavior can change outside this model.
Can profit per unit be negative?
Yes. If total order profit is negative, the displayed per-unit result will also be negative.