Business
Wholesale Pricing Break-Even Calculator
Reconcile gross order value with trade discount, product cost, packaging, and overhead to calculate net revenue, contribution per order, break-even orders, and monthly profit.
Gross list value per order-
Net revenue per order after discount-
Product cost per order-
Contribution per order-
Monthly net wholesale revenue-
Monthly contribution before overhead-
Monthly operating profit-
Whole monthly orders required-
Whole units required at average order size-
Contribution margin on net order revenue-
Next-month orders at entered growth-
Next-month operating profit-
Decision view
Wholesale order carton economics
Wholesale order carton economicsList value, discount, product cost, packaging, and contribution are reconciled for one average order before monthly break-even is checked.
Exact scenario comparisonAverage trade discount (%) changes while all other entered assumptions remain constant.
| Average trade discount (%) | Gross list value per order | Net revenue per order after discount | Product cost per order | Contribution per order | Monthly net wholesale revenue | Monthly contribution before overhead | Monthly operating profit | Whole monthly orders required | Whole units required at average order size | Contribution margin on net order revenue | Next-month orders at entered growth | Next-month operating profit |
|---|
Period-by-period detail
Trade-discount order cases
How to use Wholesale Pricing Break-Even Calculator
- Enter the realized wholesale price before tax.
- Include packaging and pick-pack expense at the order level.
- Test the economics at likely order size and discount tiers.
Calculator guide
Understanding Wholesale Pricing Break-Even Calculator
Wholesale pricing must cover unit product cost, order handling, discounts, fixed overhead, and the minimum order volume needed for a sustainable contribution.
Calculation method
How the calculation works
Build average wholesale order economics from unit count, list price, discount, product cost and handling before comparing monthly contribution with fixed overhead. Units per order multiplied by list wholesale price creates gross order value; discount and variable order costs reduce it to contribution, which is compared with fixed overhead.
Order carton
Build a wholesale order from units to contribution
The carton view separates list value, discount, product cost, packaging, and the contribution that funds monthly overhead.
Worked situations
Practical examples
- A larger order can spread packaging cost across more units.
- A distributor discount may be viable only above a minimum quantity.
- Free freight can become a separate variable-order cost.
Better inputs
Useful tips
- Separate retailer margin from your own contribution.
- Model returns and allowances explicitly.
- Set minimum orders from contribution, not revenue alone.
Before relying on the result
Limitations and common mistakes
- Freight zones, rebates, damaged goods, payment terms, chargebacks, tax, and product mix are simplified.
- The model assumes constant price and cost per unit.
- It is not a binding quotation.
Reference
Key terms
- Trade discount
- Reduction from the entered wholesale list value.
- Contribution
- Net order revenue less modeled variable order costs.
- Minimum order
- Commercial threshold that may protect per-order economics.
Important note
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Frequently asked questions
Should shipping be included?
Include seller-paid freight as a variable order cost.
Why use average order size?
It gives a planning baseline; important tiers should be modeled separately.
Does break-even include owner compensation?
Only if it is included in fixed overhead.