Business
Wholesale Discount Calculator
Enter RRP, cost and wholesale discount to see the trade price and remaining margin.
Wholesale off RRP
Wholesale discount is often quoted off RRP: ‘40% off list’ means the trade pays 60% of the retail ticket. Buyers and suppliers confuse that language with margin-on-cost, which is a different percentage entirely. This calculator converts between list price, discount percent and trade price so both sides share one number before the order form is signed. Chain the result into wholesale price and check your keep-rate with gross margin or markup vs margin. Volume tiers and marketing support sometimes sit beside the headline discount — track net-net so coop funding does not hide a worse deal. Not legal advice on MAP or selective distribution. If the retailer also wants payment-term stretch, price the cash-flow cost separately rather than pretending the discount alone tells the story. Revisit tiers when commodity costs move more than a few percent in a season.
Worked example
RRP £25 with a 40% wholesale discount → trade price = 25 × 0.60 = £15. If your cost is £9, margin on the trade price is (15 − 9) ÷ 15 = 40%. A 45% discount yields £13.75 trade and margin (13.75 − 9) ÷ 13.75 ≈ 34.5% — the extra five points of discount cost you real keep-rate.
Limits and assumptions
Assumes a clean percentage off list. Rebates, free fills and payment-term discounts need extra lines. Not a contract template.
Frequently asked questions
Is wholesale discount the same as margin?
No. Discount is usually off RRP; margin is profit as a share of the selling price you receive.
How do I get trade price from RRP and discount?
Trade = RRP × (1 − discount/100).
What if I know trade price and RRP?
Discount % = (1 − trade/RRP) × 100.
Should RRP include VAT?
Say so explicitly. UK consumer RRPs usually do; trade lists may be ex-VAT.
How do tiered discounts work?
Run each tier separately and confirm which volume band the order actually hits.