Free tool
Markup multiplier: work out yours for your store
Your markup multiplier is the number you multiply your cost price by to set your retail price. Enter your figures: the tool returns your multiplier, your margin rate, and what is left after a markdown.
Your cost, excluding tax
The one printed on your supplier invoice, before tax.
Your selling price or your target
Enter your shelf price to see your margin, or a target margin to get the suggested price.
Three numbers to decide
Margin percentage, markup and suggested price including tax.
Save time
You know your margin. There are still 200 products to type in
Refect extracts every line of your supplier invoices, applies your markup and publishes the listings on Shopify or Square.
What multiplier do shops actually apply?
The multiplier runs from the cost price excluding tax to the retail price including tax. It is not your profit: it first has to cover rent, wages, unsold stock and VAT. Here are the benchmarks used in clothing retail.
- x2.5 — the low end, a 52% margin rate at full price
- x2.7 to x3 — the usual starting zone for a multi-brand store, 60% at x3
- x3.5 — a 65.7% margin rate, usually kept for fast-moving or exclusive pieces
What a markdown changes
A 30% discount drops an x2.5 multiplier to a 31.4% margin, and an x3 to 42.9%. That is why a multiplier that looks comfortable in September no longer is in January.
One multiplier for everything is a bad idea
A basic, an exclusive piece and an accessory do not carry the same price. The multiplier is a starting point to adjust category by category, based on what your customers accept and how fast each item sells.
Benchmarks from: Modèles de business plan — markup multiplier in a clothing store, BonneGueule — how the ready-to-wear supply chain works.
Frequently asked questions
Margin or markup, what is the difference?
Margin is based on the selling price: buying at 10 and selling at 20 excl. tax is a 50% margin. Markup is based on cost: that is × 2. Same product, two different numbers.
Is VAT taken into account?
Yes. Margin is always computed on the price excluding tax, and the suggested price is returned including tax so you can put it on the shelf.
What margin should retail aim for?
It depends on your sector: often 50 to 60% in fashion, lower in food. Compare against your own references rather than a general average.
Can I apply one markup to my whole catalog?
Yes, and it is the fastest route. Refect applies a multiplier to every line of an invoice while still letting you adjust product by product.