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Enter your unit cost and target margin to get a wholesale price and a suggested retail price (MSRP), with your margin and the retailer's side by side. A style that costs $24.00 at a 60% margin wholesales for $60.00 and retails for $120.00 at keystone.
Prices are rounded to the nearest cent.
Wholesale price $60.00, MSRP $120.00.
The link holds only these numbers, nothing personal.
Divide your unit cost by one minus your target margin: $24.00 ÷ (1 − 0.6) = $60.00. Then multiply the wholesale price by the retailer's multiplier to get the MSRP, so $60.00 × 2 = $120.00 at keystone.
Work in that order, from cost to wholesale to retail, so both margins come from real numbers. If the MSRP lands above what your customer will pay, lower your cost or your margin rather than asking the retailer to take less.
Margin is profit as a share of the selling price, and markup is profit as a share of cost. A dress that costs $24.00 and wholesales for $60.00 earns $36.00: that is a 60% margin and a 150% markup, the same profit described two ways.
Mixing them up is expensive. Pricing the same dress at a 60% markup instead of a 60% margin gives a wholesale price of $38.40 instead of $60.00.
| Margin | Markup on cost | Wholesale ÷ cost |
|---|---|---|
| 40% | 66.7% | 1.67× |
| 50% | 100% | 2× |
| 55% | 122.2% | 2.22× |
| 60% | 150% | 2.5× |
| 65% | 185.7% | 2.86× |
| 70% | 233.3% | 3.33× |
Include everything it takes to land one finished unit in your warehouse: fabric and materials, cut-make-trim labour, trims, labels and packaging, and inbound freight and duty. Leave any of them out and your real margin will be lower than the one you planned.
Choose "Break it down" in the calculator to enter each part and let it add them up for you.
Start at keystone, a multiplier of 2, which leaves the retailer a 50% margin, then ask each account which multiplier it uses. Some stores price at 2.2 or 2.5 times wholesale to leave room for markdowns; keystone pricing explains how each multiplier splits the price.
| Multiplier | MSRP | Retailer margin |
|---|---|---|
| 2× (keystone) | $120.00 | 50% |
| 2.2× | $132.00 | 54.5% |
| 2.5× | $150.00 | 60% |
A case pack sets how many units of a style ship together, and a minimum order quantity sets the smallest order you accept; together they decide the smallest order a buyer can actually place. Read more about case packs and minimum order quantities.
Wholesale prices are rounded to the nearest cent, or to whole units in currencies without cents, such as the Japanese yen. If you choose a retail ending of .00, .95 or .99, the MSRP is rounded up to the next price with that ending, so the retailer's margin never falls below the multiplier.
What doubling the wholesale price means for you and for the retailer.
How case packs are priced and how they change a buyer's order.
How to set a minimum in units or order value, and when to use each.
ModaFlow.ai keeps each style's wholesale price, MSRP, case pack and minimum together and shows them on your line sheets, lookbooks and buyer portal. Every plan starts with a 14-day free trial.