Streetwear Wholesale Pricing Calculator: Margin, MOQ & Break-Even Guide

Streetwear Wholesale Pricing Calculator: Margin, MOQ & Break-Even Guide

Wholesale can expand a clothing brand beyond direct-to-consumer sales, but a retailer order is only useful if the numbers work for both sides. This guide gives independent streetwear brands a reusable way to calculate true unit cost, wholesale margin, suggested retail price, minimum order quantity (MOQ), and break-even units before sending a line sheet.

Quick formula: Break-even units = fixed costs ÷ (selling price per unit − variable cost per unit). The U.S. Small Business Administration uses this formula in its break-even guidance, while Shopify defines profit margin as (sell price − cost) ÷ sell price × 100.

1. Start with true landed cost per unit

Do not price from the blank garment alone. Build a unit-cost worksheet that includes the blank or cut-and-sew cost, decoration, labels, packaging, inbound freight, duties where applicable, quality-control loss allowance, and any per-unit fulfillment expense that belongs to the order.

Unit-cost template

  • Garment or manufacturing: $___
  • Print / embroidery / decoration: $___
  • Labels and trims: $___
  • Packaging: $___
  • Inbound freight and duties allocated per unit: $___
  • Other variable cost per unit: $___
  • Total variable cost per unit: $___

2. Calculate wholesale margin instead of guessing a markup

Wholesale gross margin % = (wholesale price − variable unit cost) ÷ wholesale price × 100.

Markup and margin are not the same. A $20 unit cost marked up 50% becomes $30, but the gross margin at $30 is only 33.3%. Shopify’s current profit-margin calculator makes the same distinction and recommends including the costs involved in making, storing, shipping, and selling a product.

Worked streetwear example

Assume a heavyweight tee has a true variable cost of $18. If the wholesale price is $36, gross profit before fixed costs is $18 per unit and gross margin is 50%. If the suggested retail price is $72, the retailer also has $36 of gross spread before its own costs when selling at full price. This is an example, not a required industry price.

3. Set an MOQ that protects the order

An MOQ should reflect economics, not ego. Shopify’s B2B wholesale guidance notes that brands can use minimum order quantities or minimum order values to keep bulk orders profitable. Start by identifying any fixed cost created by the wholesale order: setup, screens, sampling, freight minimums, admin time, or special packaging.

Order contribution = (wholesale price − variable unit cost) × units.

If a wholesale order creates $180 in fixed setup costs and contributes $18 per unit, 10 units cover that setup cost. That does not automatically make 10 units the right MOQ; it gives you a mathematical floor to evaluate alongside production minimums and the time required to service the account.

4. Calculate break-even units for the drop

The SBA defines break-even as the point where total cost and total revenue are equal. Use:

Break-even units = fixed costs ÷ contribution per unit.

If a collection carries $1,200 in fixed development, photography, sampling, and launch costs and contributes $18 per wholesale unit, $1,200 ÷ $18 = 66.67. Round up: 67 wholesale units would be required to cover those fixed costs under that simplified scenario.

5. Stress-test discounts before offering them

Run the formula again at every proposed wholesale price. A discount reduces contribution per unit unless costs fall too. If the $36 wholesale tee is discounted to $32 while variable cost stays $18, contribution falls from $18 to $14 and gross margin falls from 50% to 43.75%. Your MOQ may need to change accordingly.

Wholesale pricing worksheet

  1. Variable unit cost = $___
  2. Proposed wholesale price = $___
  3. Contribution per unit = wholesale price − variable cost = $___
  4. Wholesale gross margin = contribution ÷ wholesale price × 100 = ___%
  5. Suggested retail price = $___
  6. Fixed costs to recover = $___
  7. Break-even units = fixed costs ÷ contribution = ___ units
  8. Proposed MOQ = ___ units
  9. Contribution at MOQ = contribution × MOQ = $___

What to check before sending a wholesale line sheet

  • Every SKU has a verified landed cost.
  • Wholesale and retail pricing are intentional, not copied from another brand.
  • MOQ or minimum order value covers the work created by the order.
  • Discount tiers have been margin-tested.
  • Lead times, payment terms, size runs and fulfillment expectations are written clearly.
  • Product labeling and care information have been checked before production.

Build the business behind the clothes

Pricing is one part of the operating system. The Entrepreneur Resource Vault gives creators and entrepreneurs a broader framework for brand, content, systems, money and growth. If you need direct help planning the product and brand side, explore Clothing Brand Consultation.

For the production side, continue with our Streetwear Print Methods Guide and Clothing Brand Tech Pack Checklist.

Sources

CTA: Build your clothing brand with ii syndicate LLC.

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