Distributor Margin Calculator
Compare distributor and retailer profit, margin, markup, commission, and channel price spread before you quote.
Enter Channel Prices
Use one currency for every field and enter values on a per-unit basis.
Ready to calculate in your browser.
Channel Margin Result
Review both per-unit economics and the projected order totals before confirming a price.
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How to Compare Channel Margins
Use the same unit and currency at every level so the comparison remains meaningful.
Add the factory price, wholesale list price, discount, commission, other distributor costs, retail price, and quantity.
Review distributor and retailer gross profit separately instead of relying only on the final retail markup.
Adjust discounts, commissions, or prices and confirm that the resulting margins support the channel relationship.
Formula and Result Guidance
Distributor economics
Net wholesale revenue is the list price after discount. Commission is deducted together with factory price and other distributor costs.
Retailer economics
Retailer gross profit is retail price minus net wholesale price. Retailer gross margin divides that profit by retail price.
Use one confirmed currency
The currency control formats results but does not perform conversion. Apply a confirmed exchange rate before entering mixed-currency values.
Net wholesale revenue = wholesale list price × (1 − discount rate)Distributor gross profit = net wholesale revenue − factory price − other costs − commissionDistributor gross margin = distributor gross profit ÷ net wholesale revenueRetailer gross margin = (retail price − net wholesale price) ÷ retail price
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Frequently Asked Questions
How is distributor gross profit calculated?
Net wholesale revenue equals the wholesale list price after the entered discount. Distributor gross profit equals net wholesale revenue minus the factory price, other distributor costs, and sales commission.
What amount is the sales commission based on?
The calculator applies the commission percentage to net wholesale revenue after the channel discount. If your agreement uses another commission base, calculate that amount separately and enter it within other distributor costs.
Does the calculator convert currencies?
No. The currency selector only formats the result. Enter every price and cost in the same currency and use a confirmed exchange rate before entering values when conversion is required.
What does a negative margin mean?
A negative distributor margin means the entered net wholesale revenue does not cover the entered factory price, other costs, and commission. A negative retailer margin means the retail price is below the net wholesale price.
Are my prices or margins saved?
No. The calculations, copied summary, and CSV file are created locally in your browser. TradeGoAI does not upload or store the prices, costs, discounts, commissions, or quantities you enter.
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