AFreight
Input:€4.20
Added:+€0.350(€0.350 fixed)
Output:€4.55
Cumulative:+8.3%
Middleman 2-Way Pricing Calculator
Build pricing forward from the supplier or backwards from the customer, through the chain.
Best for: distribution chains, importer margins, broker/agent commissions, and reverse pricing from a target customer price.
Base Price
Your supplier or landed cost — the starting price every markup in the chain builds on.
€4.20
Optional
Markup Chain
Add each middleman in order — every markup builds on the previous layer's price, so small percentages compound.
Output carried forward
BMiddleman markup
%
Percentage8.0%
Input:€4.55
Added:+€0.364(8.0% markup)
Output:€4.91
Cumulative:+17.0%
Output carried forward
CDistributor markup
%
Percentage12.0%
Input:€4.91
Added:+€0.590(12.0% markup)
Output:€5.50
Cumulative:+31.0%
Add another step to the chain (markup, fixed cost, or shipping).
Final Customer Price
What the end customer pays after all 3 layers. The gap over your base price is everything the chain adds on top.
End-customer price
€5.50
Lock to work backwards from a target customer price.
Base price
€4.20
Final price
€5.50
Total added
+€1.30
Margin
23.7%
Overall increase
+31.0%
Layers
3
Avg / layer
+10.3%
Highest impact
+€0.590
Distributor markup
Every layer in the chain changes the real cost.
Each broker, agent or distributor margin stacks onto the price that reaches you. Take the cost of the layer you actually buy at into true landed cost, then check the margin that's left once the whole chain is priced in.
Quick practical guide
Use this calculator to price forward from supplier cost or reverse from a locked target customer price. Each layer can add percentage markup, fixed cost, mixed markup + fixed cost, or landed-cost logic.
- Best used for
- Distribution chain pricing, importer margins, broker/agent commission stacking, landed-cost steps, and reverse pricing from a target shelf/customer price.
- Forward pricing
- Start with the supplier/base price, then add markup, fixed cost, mixed, or landed-cost layers. Review each layer's input, added amount, output, cumulative increase, margin, and highest-impact layer.
- Landed cost layer
- Use “Landed cost calc” for shipping/import/tariff/VAT-style steps. It uses the previous output as supplier/unit price and stays fixed (non-adjustable) in reverse-solver mode.
- Discount layers
- Set a layer’s direction to Discount to model a rebate, promo, or volume discount. It subtracts from the running price instead of adding to it, so the chain can move down as well as up.
- Shipment quantity
- Enter your order quantity to see each layer’s total impact across the whole shipment, not just per unit — so you can size the cash the deal really moves.
- Reverse pricing
- Turn on “Lock final price” when you already know the target customer price. Change one unlocked layer and the calculator rebalances other unlocked values where possible. Locked and landed-cost layers do not move; base price can compensate only when unlocked.
- Feasible ranges
- When final price is locked, feasible ranges show what values are possible while keeping the target fixed. If no compensation path exists, some fields are limited or disabled.
- Compact mode
- Use Compact to fit the whole chain on one screen. Markup layers keep sliders visible in compact mode, while landed-cost layers stay summary-only when collapsed.
- Preset tip
- Try “Supplier → Landed cost → Importer”. Supplier is the base price (not a separate layer), Shipping is the landed-cost layer, and Importer is the markup layer.
- Formula
- Layer output = input + (input × markup %) + fixed fee
- Currency
- The chain calculates in the base currency. Add a comparison currency on the Final Customer Price card to display the result in another currency, converted via ECB reference rates from Frankfurter.
Worked example
Inputs
- Supplier price: €100
- Importer: +15%
- Distributor: +20%
- Retailer: +30%
Result
- After importer: €115.00
- After distributor: €138.00
- After retailer: €179.40
- Total added: +€79.40
- Overall increase: +79.4%
Three reasonable markups almost double the final customer price because each layer applies its increase to the previous layer's output, not to the original supplier price.
View limitations
This calculator does not:
- Validate contract terms or commission agreements.
- Replace a full customs, duty, or VAT calculation — use the Landed Cost tool for that.
- Decide whether a middleman is commercially justified.
- Replace legal, tax, accounting, or commercial advice.
Related guides
- How Middlemen, Brokers, and Distributors Affect Final Price
Why small layered markups compound into a much larger end price.
- Markup vs Margin: The Difference That Breaks Pricing
Two numbers, same trade — and the mistake that costs the most.
Frequently asked questions
Is markup the same as margin?
No. Markup is added on top of cost. Margin is profit as a percentage of selling price. A 25% margin is about a 33.3% markup.
Does each layer apply to the original base price?
No. Each layer applies to the previous layer's output. That is why small percentages can compound into a much larger overall increase.
Can I mix percentage markup and fixed fees?
Yes. Use 'Markup + fixed cost'. The percentage is applied first, then the fixed fee is added on top.
Does the order of layers matter?
Yes. Earlier percentage markups are amplified by later layers, so changing the order can change the final price.
Can I use this for broker commissions?
Yes. It is useful for modelling broker, agent, distributor, marketplace, and retailer layers.
Next useful calculators
- Markup vs Margin CalculatorConvert between markup and margin without confusing the two.
- Supplier Quote ComparatorThe quote engine: normalize messy supplier quotes and compare the real delivered cost per unit.
- Landed Cost CalculatorCalculate true delivered cost per unit including freight, duty, VAT and handling.
Related guides
Disclaimer. These tools provide estimates for general informational purposes only. They are not financial, tax, customs, legal, or professional advice. Always verify calculations with your accountant, customs broker, freight forwarder, or relevant professional before making business decisions.