Free distributor tool
Food Distributor Margin & Minimum Order Calculator
Check margin and markup on an existing price, set a selling price from a target margin, or find the minimum order that covers a delivery stop. It is free and works in your browser.
Run the pricing math for your next decision
Choose one calculation, enter your own dollars and percentages, and get an auditable answer to the cent. The calculator does not assume an industry target or change your inputs.
What do you want to calculate?
How do you calculate food distributor margin and markup?
Subtract landed cost from selling price to find gross profit. Gross margin divides that profit by selling price, while markup divides it by landed cost. Margin and markup use different denominators, so they should not be used interchangeably.
Gross profit = selling price − landed cost
Gross margin = gross profit ÷ selling price
Markup = gross profit ÷ landed cost
Illustrative example: a $10.00 landed cost and $13.00 selling price produce $3.00 gross profit. That is a 23.08% gross margin and a 30.00% markup. These examples explain the math only; they are not an industry target or a promise of profitability.
How do you set a selling price from a target margin?
Divide landed cost by one minus the target margin. The result is the lowest selling price that meets the target before taxes and any costs you chose not to include in landed cost.
Illustrative example: at a $10.00 landed cost and 30.00% target margin, the minimum selling price is $14.29. That leaves $4.29 gross profit, a displayed 30.02% margin, and 42.90% markup. The displayed margin can be slightly higher because the calculator rounds the selling price upward to a whole cent.
How do you calculate a wholesale minimum order?
Add the incremental cost of serving a delivery stop to the contribution you want from it, then divide by the contribution margin you expect on the order. The result is the sales threshold needed for that one stop under your assumptions.
Required contribution = incremental stop cost + desired contribution
Minimum order = required contribution ÷ contribution margin
Illustrative example: a $55.00 stop cost plus $35.00 desired contribution requires $90.00 of contribution. At a 22.00% contribution margin, the minimum order is $409.10. The calculator returns the exact cent threshold; you can choose a separate, practical policy round-up for your own price list.
What should landed cost and stop cost include?
Landed cost is the cost basis you choose to price from. It may include purchase cost, freight, receiving, spoilage allowance, packing, or other direct costs that matter to your operation. Incremental stop cost can include the additional labor, fuel, vehicle, handling, and route costs caused by one delivery. Use the same definitions consistently when comparing products, customers, and routes.
Private calculations, planning estimates
Your inputs stay in this browser session. This tool does not save or transmit entered values. Results are planning estimates, not accounting, tax, or financial advice. Replace every illustrative value with your own current costs, policies, and professional guidance before making a business decision.
Keep planning your wholesale operation
Food distributor profit margins
Read the longer guide to margin, markup, landed cost, and pricing decisions.
Wholesale minimum order guide
See how delivery-stop costs connect to a practical wholesale order policy.
B2B ordering
See how Minori Midori supports wholesale accounts, price tiers, and net terms.
See it in your own storefront.
Create your store, pick a subdomain and add a product, or have us walk you through it first.
Calculator questions, answered.
What is the difference between margin and markup?+
Gross margin is gross profit divided by selling price. Markup is gross profit divided by landed cost. They describe the same dollars from different bases, so a 30% markup is not a 30% margin.
Does the calculator use an industry benchmark?+
No. Minori Midori does not infer a target margin or contribution margin from industry averages. Enter the margin policy and costs that fit your products, customers, routes, and operating plan.
Why can the actual target-price margin be slightly above my target?+
Selling prices can only move in whole cents. The calculator rounds the minimum selling price upward so it never falls below your requested target margin, which can make the displayed actual margin slightly higher.
Are my calculator inputs saved or sent anywhere?+
No. This version calculates in your browser only. Minori Midori does not save, transmit, profile, or attach entered costs, prices, or percentages to an account or tenant.
Is a minimum order the same as a delivery fee?+
No. A minimum order is the sales threshold needed to cover the stop cost and the contribution you choose at your stated contribution margin. A delivery fee can be one policy used alongside that threshold, but the calculator does not prescribe either policy.