markup calculator
Work out a selling price from your cost, or your markup and margin from a price you’ve already set. There’s also the wholesale-to-retail pricing ladder fashion brands actually use.
fashion law journal · tools deskupdated 25 sep 2026for founders & resellers
Quick answer: markup is profit divided by cost. Margin is profit divided by price. A dress that costs $40 and sells for $100 has a 150% markup but a 60% margin. To hit a target margin, price = cost ÷ (1 − margin).
Include everything it takes to get one unit ready to sell in your cost: fabric, trims, cutting and sewing, labels, packaging and freight.
the fashion pricing ladder
Most fashion brands price in two steps. Wholesale is usually about 2 to 2.5 times the landed cost, and retailers then mark up wholesale by about 2 to 2.5 times again. A plain 2× markup is called “keystone”. Direct-to-consumer brands often price at 4 to 5 times cost because they keep both steps.
| cost | wholesale (2.2×) | retail (keystone, 2×) | retail (2.5×) | DTC margin at 2.5× retail |
|---|
markup to margin conversion
| markup | margin | price multiple |
|---|---|---|
| 25% | 20.0% | 1.25× |
| 50% | 33.3% | 1.5× |
| 100% | 50.0% | 2× (keystone) |
| 150% | 60.0% | 2.5× |
| 200% | 66.7% | 3× |
| 300% | 75.0% | 4× |
pricing and the law
You’re free to set your own retail prices. Brands telling retailers what minimum price to charge is different: in the UK and EU that’s resale price maintenance, treated as a serious competition law breach. In the US it’s judged case by case under federal law, and some states are stricter.
“Was/now” discounts must be based on a genuine earlier price. In the UK the CMA can now fine businesses directly for misleading pricing under the Digital Markets, Competition and Consumers Act 2024.
markup questions
How do I calculate markup?
Markup % = (price − cost) ÷ cost × 100. An item costing $40 and selling for $100 has a markup of 60 ÷ 40 = 150%.
What’s the difference between markup and margin?
Markup compares profit to cost. Margin compares profit to price. Markup is always the bigger number for the same sale. A 100% markup is a 50% margin.
What is a good markup for clothing?
Retailers commonly mark up wholesale by 2 to 2.5 times. Direct-to-consumer brands often price at 4 to 5 times their landed cost to cover marketing, returns and discounting.
What is keystone pricing?
Doubling the wholesale cost to set the retail price, which is a 100% markup and a 50% margin. It’s the traditional baseline in fashion retail.
For planning only. Real prices should also account for returns, discounts, payment and platform fees, and taxes. Not financial or legal advice. More from FLJ: eBay fee calculator · Etsy fee calculator.