How to Price Clothing for Profit (Markup Calculator)

Found this guide useful? Share it with someone who needs it.

Add Tailor Size Guide as a preferred source on Google

Apparel pricing rule: cost × markup multiplier = retail. Keystone (2x) for wholesale, 2.5-3x for direct-to-consumer, 4-5x for boutique/luxury. Pick by channel + brand position.

The Chart

Markup	Multiplier	Where Used
Keystone	2x	Wholesale-only
DTC standard	2.5-3x	E-commerce direct-to-consumer
Boutique	3-4x	Curated retailers + boutiques
Luxury	4-5x	Designer + premium positioning

Notes

Example: Cost = $25 (fabric + labor + overhead per unit). DTC retail = $25 × 3 = $75. Wholesale = $25 × 2 = $50, retailer marks up to $100. Both work — DTC needs higher markup because you carry marketing + customer service costs that wholesale offloads.

FAQs

What about discounts?

Build them into your markup. If you'll do 30% off sales, your 'normal' retail must support that markdown + still hit your margin. Plan promotional cadence + price accordingly.

Cost includes what?

Cost of Goods Sold (COGS): fabric, trim, labor, packaging. Plus allocated overhead (sample fees, photography, design). Don't forget shipping inbound from manufacturer.

Need this on your store?

Tailor Size Guide ships pre-built size charts for Shopify.

Install the Shopify app Read the docs