Free tool
Three-tier margin calculator
Free margin calculator for wine, spirits, beer, and RTD brands. The Margin Wizard walks you through MSRP or brand cost, then retailer, distributor, and brand margins. Switch to Compare products for side-by-side edits.
How this three-tier margin calculator works
US beverage alcohol pricing usually stacks three margins on the same selling price: retailer, distributor, and brand. This free tool shows the dollar waterfall either direction so you can set MSRP, wholesale, and brand contribution with eyes open before you launch DTC or negotiate a program.
- MSRP down: enter the consumer price, set each tier’s margin %, and see what is left for the brand.
- Cost up: enter brand cost, set target margins, and build to a suggested selling price.
- Compare products: model two or more SKUs side by side when pack sizes or channels differ.
Planning compliant reach next? See our compliant shipping reach map, read the DTC and three-tier FAQ, or talk with LiquidRails about a real pricing structure on our network.
Margin calculator FAQ
How does a three-tier margin calculator work?
You enter a selling price (MSRP) or a brand cost, then set retailer, distributor, and brand margin percentages. The calculator works backward or forward through the three-tier stack so each party's dollars and the remaining brand economics are clear before you set pricing.
Should I start from MSRP or brand cost?
Start from MSRP when you already know the shelf or DTC price and need to see what is left after retailer and distributor take. Start from brand cost when you know your COGS or target brand dollars and need to build the price stack up to a consumer price.
What retailer margin should beverage brands assume?
Many DTC and specialty retail programs plan around roughly one-third retailer margin on selling price. This calculator defaults to 33% retailer margin so you can stress-test other retailer and distributor takes against your brand target.
Is this calculator only for wine, spirits, and beer brands?
It is built for beverage alcohol brands that sell through a three-tier style stack (retailer, distributor, brand), including wine, spirits, beer, and RTD. The same waterfall math also helps you compare SKUs side by side before you lock pricing.