Clothing pricing calculator
Unit cost → wholesale → retail, with the margin you actually keep.
| Tier | Price | Gross margin | Markup on cost |
|---|---|---|---|
| Cost per unit | $12.00 | — | — |
| Retail / RRP (x4.8) | $58 | 79.2% over your cost | 4.80x cost |
Selling wholesale instead? Switch the channel in the calculator for the two-step keystone ladder (cost x2.2 → wholesale x2.2 → retail x2.2). A 2x multiple is a 50% margin, not 100%.
To price a clothing line, apply keystone markup: multiply your landed cost per unit by about 2–2.5× for the wholesale price, then by 2–2.5× again for the recommended retail price (RRP). A garment costing $12 wholesales near $26 and retails near $58 — a 54.5% gross margin at each step. Watch the trap: a 2× markup is a 50% margin, not 100%. Margin is the share of the selling price you keep; markup is added on top of cost. This calculator shows both, in your currency, with VAT/GST for the US, UK, EU, AU and SG.
How the calculator prices your garment
The calculator takes one number you know — your landed cost per unit — and builds the price ladder that matches how you actually sell.
Selling direct (your own site or a marketplace)? One multiple takes you straight from cost to retail — most D2C brands run 3.5–5×, because that price has to cover marketing, returns and overhead. Selling wholesale? The ladder adds the two-step keystone structure: 2–2.5× from cost to your wholesale price, then the retailer's 2–2.5× markup to the rack price.
Every price shows its gross margin (the share of the sale you keep) next to its markup (the amount added on top of cost), because confusing the two is the single most common pricing mistake in fashion. Don't know your cost? Drop a screenshot of a product into the tool and it estimates the landed cost from our garment cost tables.
Price a garment in three inputs
- 1
Enter your landed cost per unit
Not the factory quote alone — add freight, duty and inbound handling. Apparel landed cost runs 15–30% above the FOB factory price. If you don't have a real cost yet, drop in a product screenshot and the tool estimates it from our cost tables. - 2
Set your wholesale and retail multiples
Start at keystone (2.0–2.5×). Selling D2C only? Use a single 3.5–5.0× multiple from cost. Selling wholesale + your own site? Keep both steps and set your D2C price at or above the RRP so you don't undercut retail partners. - 3
Pick your market and read the margin
Switch to UK, EU, AU or SG to apply VAT/GST and show a VAT-inclusive RRP. Then open 'go deeper' to subtract marketplace fees and returns and see the margin you actually keep.
Margin vs markup — the difference that costs brands money
These are not the same number, and mixing them up systematically under-prices a garment. Markup is measured against cost; margin is measured against the selling price. A 2× keystone multiple is a 100% markup but only a 50% gross margin.
| Multiple (×cost) | Markup on cost | Gross margin (of price) | On a $12 cost |
|---|---|---|---|
| 1.5× | 50% | 33.3% | $18.00 |
| 2.0× (keystone) | 100% | 50.0% | $24.00 |
| 2.2× | 120% | 54.5% | $26.40 |
| 2.5× | 150% | 60.0% | $30.00 |
| 3.0× | 200% | 66.7% | $36.00 |
| 4.0× | 300% | 75.0% | $48.00 |
Convert either way: margin = markup ÷ (1 + markup); markup = margin ÷ (1 − margin). Keystone doubling gives a 50% margin, not 100%.
The cost → wholesale → retail ladder
Target margins and price ranges by channel
Where the multiple should land depends on the channel you sell through — each layer has to cover that channel's costs. These ranges reflect a typical indie brand producing 200–500 units per style overseas.
| Channel | Gross margin target | Typical multiple from cost | What it must cover |
|---|---|---|---|
| D2C (own website) | 65–80% | 3.5–5.0× | Marketing/CAC (25–35% of revenue), shipping, returns (~24%), platform fees, overhead |
| Wholesale | 50–65% | 2.0–2.5× | Production, design, sampling, overhead, profit |
| Marketplace (Amazon/Etsy) | 55–70% | 3.0–4.0× | Referral fees (15–17%), fulfillment, ads, returns |
Average apparel gross margin is 53.5% (NYU Stern). Premium/luxury runs 60–75%; fast fashion 45–55% at higher volume.
Real pricing ranges by garment type
Realistic ranges for an indie brand, moderate-quality materials, overseas production. Seed the calculator with the low end of your garment's cost, then tune the multiples.
| Garment | Cost (landed) | Wholesale | Retail / RRP | D2C price |
|---|---|---|---|---|
| Basic t-shirt | $6–$12 | $14–$28 | $28–$58 | $24–$48 |
| Hoodie | $12–$22 | $28–$52 | $55–$110 | $48–$95 |
| Jeans | $15–$30 | $35–$70 | $70–$150 | $58–$128 |
| Dress (casual) | $10–$25 | $24–$58 | $48–$120 | $40–$98 |
| Blazer | $25–$60 | $58–$140 | $120–$300 | $98–$250 |
| Swimwear (set) | $8–$18 | $18–$42 | $38–$90 | $32–$75 |
| Outerwear (puffer) | $30–$70 | $70–$165 | $140–$350 | $120–$295 |
| Activewear leggings | $8–$18 | $18–$42 | $38–$90 | $32–$75 |
Domestic US/EU production runs 2–3× overseas cost — raise the cost input accordingly. Ranges from Adstronaut's clothing-line pricing guide.
Stop guessing the cost. One garment photo becomes a factory-ready tech pack with an itemized bill of materials — the exact landed cost your price is built on.
Generate a tech pack →Pricing across markets: currency and VAT/GST
The same garment carries a different displayed retail price by market, because most countries show consumers a tax-inclusive price:
United States — no VAT. Sales tax (roughly 7% on average) is added at checkout by state, so RRP is shown tax-exclusive.
United Kingdom — 20% VAT, and retail prices must be shown VAT-inclusive to consumers. A £26 ex-VAT price shows as £31.20 on the shelf.
European Union — VAT varies by country (17%–27%; the calculator defaults to 20% and lets you set your rate). Displayed inclusive.
Australia — 10% GST, included in displayed prices. Singapore — 9% GST (from 2024), included.
The key rule: VAT is never part of your margin. You collect it and remit it — it isn't revenue. The calculator computes every margin on the ex-VAT (net) price and only adds VAT/GST for the shelf display. Rates last reviewed 2026-07-06; this is planning guidance, not tax advice — confirm your registered rate.
Keystone vs absorption pricing — which method
Start with keystone; sanity-check with absorption and a margin target
Keystone pricing (a fixed 2–2.5× multiple at each step) is the fast default and what the calculator opens with — it's how most brands and retailers actually price. Absorption (cost-plus) pricing works backwards from all your costs plus a target profit: price = (unit cost + overhead per unit) ÷ (1 − target net margin). Use it when you can allocate overhead per unit and want to guarantee every cost is recovered.
Most indie brands price with keystone, then run the target-margin check ('I know my target margin instead') to confirm the multiple hits the 50–65% wholesale / 65–80% D2C bands. If it doesn't, the fix is almost always the cost input — which is why the next step is nailing your true cost.
The margin you actually keep: fees and returns
A headline 54.5% gross margin is not what lands in your account. Open go deeper to subtract the two biggest erosions:
Channel fees. A marketplace referral fee is 15–17% of the sale (plus fulfillment and ads — effective platform cost 25–35%). D2C payment processing is ~2.9% + $0.30, but you also pay to acquire the customer.
Returns. Online apparel is returned at about 24% (NRF), roughly double the in-store rate. Every return costs return shipping and handling, and a share of returned units can't be resold at full price. On our $58 tee, a 15% marketplace fee plus 24% returns can drop the effective margin from 54.5% to around 31%. The calculator shows this live so you can price up or design returns down before you launch.
Still at the idea stage? Design your first product with AI — rendered views, edits and logo placement, before you spend a cent on manufacturing.
Design your first product →How this compares to a pricing spreadsheet
You can build this in Excel — a cost cell, two multiplier cells, a margin formula — and many brands do. The difference is speed and the mistakes the calculator prevents: it shows margin and markup side by side (so you don't accidentally price off markup), it back-solves a multiple from a target margin, it keeps VAT out of the margin automatically, and it stress-tests fees and returns without you rebuilding formulas.
A spreadsheet is better once you're modeling a whole line with per-style overhead allocation and break-even. For a single garment's price, this is faster and harder to get wrong. When you're ready to lock the real cost behind the price, generate a tech pack — it produces the itemized bill of materials the whole ladder depends on.
Clothing pricing questions, answered
How do I calculate the retail price of a clothing item?
Take your landed cost per unit and apply keystone markup: multiply by about 2–2.5× to get the wholesale price, then by 2–2.5× again to get the retail price (RRP). A $12 garment wholesales near $26 and retails near $58. If you sell direct-to-consumer only, a single 3.5–5.0× multiple from cost is the common shortcut because it has to cover marketing and returns.
What is the difference between margin and markup?
Markup is measured against cost — the amount added on top. Margin is measured against the selling price — the share you keep. They are not equal: a 2× keystone multiple is a 100% markup but only a 50% gross margin. Convert with margin = markup ÷ (1 + markup). Pricing off markup when you meant margin is the most common way brands under-price.
What is keystone pricing?
Keystone pricing doubles the price at each step — a 2× multiple from cost to wholesale and again from wholesale to retail, so retail is roughly 4× cost. It's the fashion default because a 2× multiple equals a 50% gross margin, which is the minimum most channels need. Many brands use 2.2–2.5× to leave room for discounts and returns.
What gross margin should a clothing brand aim for?
Target 50–65% at wholesale and 65–80% for D2C. The average apparel gross margin is 53.5% (NYU Stern); premium and luxury run 60–75%. Below 45% wholesale or 60% D2C, the business struggles to cover marketing, returns, and overhead.
How do I price clothing if I only sell on my own website?
Multiply your full landed cost by 3.5–5.0× and target a 65–80% gross margin. D2C keeps the full retail margin but pays all customer-acquisition cost (25–35% of revenue), shipping, and returns (~24% in fashion). Set your D2C price at or above your RRP so you never undercut wholesale partners.
Do I include VAT or sales tax in the price?
In the UK, EU, Australia and Singapore, displayed retail prices include VAT/GST by convention or law, so the calculator shows a tax-inclusive RRP for those markets. In the US, sales tax is added at checkout, so US RRP is shown tax-exclusive. Either way, VAT/GST is never part of your margin — you collect and remit it, so the calculator computes all margins on the ex-tax price.
How much do returns and marketplace fees affect my margin?
A lot. Online apparel returns average about 24% (NRF) and a marketplace referral fee is 15–17% (25–35% effective with fulfillment and ads). Together they can cut a 54.5% gross margin to around 31%. Use the calculator's 'go deeper' panel to subtract fees and returns and see the margin you actually keep before you set the price.
What cost should I enter — the factory quote or something more?
Enter your landed cost: the factory (FOB) price plus freight, duty and inbound handling, which typically adds 15–30%. Pricing off the bare factory quote overstates your margin by that amount. If you don't have a reliable cost yet, generate an itemized bill of materials from a garment photo with Adstronaut's tech pack tool and use that total.
You have a price. Now nail the cost it's built on.
This calculator is only as good as the cost you feed it. Upload one garment photo and Adstronaut generates a factory-ready tech pack with an itemized BOM — your true landed cost, line by line, not a guess.
Generate a tech pack from a photoRelated tools and guides
Sources and further reading
- NYU Stern — industry margin database — 53.5% average apparel gross margin
- National Retail Federation — consumer returns — 24.4% online apparel return rate
- McKinsey — State of Fashion — 30–40% of fashion inventory marked down
- UK Government — VAT rates — standard UK VAT 20%
- IRAS Singapore — GST — GST 9% from 2024
- Australian Taxation Office — GST — GST 10%