Private Label Pricing Calculator

This calculator compares a branded product line against a private-label alternative on the two metrics that actually matter for a retail buying decision: margin percentage and total profit dollars. Margin for each is computed the standard retail way — (retail price − cost) ÷ retail price — expressed as a percentage of the selling price, not a markup over cost, so a $45 private-label item costing $15 shows a 66.7% margin. Margin difference simply subtracts branded margin from private-label margin in percentage points, which is usually positive since private label typically strips out brand licensing and marketing costs baked into the branded cost. But margin percentage alone can mislead: private label often sells at a lower retail price and lower volume expectations, so the calculator also multiplies each option's per-unit profit by your expected sales volume to get total profit in dollars — the number that actually hits the P&L.

Volume break-even answers the practical follow-up question: since private label usually earns less profit per unit in dollar terms even at a higher margin percentage, how many private-label units would you need to sell to match the total profit the branded line generates at your expected volume? If that break-even number is unrealistically high relative to your private label's likely demand, the branded line may still be the better financial choice despite its lower percentage margin. This model assumes cost and price stay constant across volume — it doesn't account for potential volume discounts on private-label manufacturing or diminishing sell-through at higher unit counts.