How to Price Clothing for Profit (Markup Calculator)
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.