The formulas
Wholesale price = cost ÷ (1 − margin %)
Suggested retail price = wholesale price × retailer multiple
Example: a garment that lands at 8.00 with a 50% margin wholesales at 8.00 ÷ 0.5 = 16.00. At a 2.2× retail multiple it sells for 35.20.
Margin and markup are different
Margin is profit as a share of the selling price. Markup is profit as a share of cost. A 50% margin is a 100% markup. Mixing them up is the most common pricing mistake, so the calculator shows both.
Choosing numbers
Fashion wholesale margins and retail multiples vary by market and channel. Many retailers expect to roughly double the wholesale price. If you sell direct to consumers you keep both margins but also carry marketing and fulfilment costs. Check unit economics with the profit margin calculator.
Common questions
What is keystone pricing?
Doubling the cost to set the price: a 100% markup, which is a 50% margin.
Should cost include shipping and duty?
Yes. Use the landed cost, which includes freight and duty, or your margin will be lower than you think.