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Pricing / Profit Engine

Estimate selling price per garment, net revenue, realized margin, markup, and profit using production cost and commercial deductions.

Enter production cost, pricing target, discounts, commissions, payment fees, freight-out, and order quantity to estimate selling price and profitability.

This tool separates nominal selling price from realized net revenue, so you can see how commercial deductions affect profit per garment.

Cost base and pricing target

Use production cost and a target markup or margin to calculate the nominal selling price.

USD / garment
%

Commercial deductions

Add selling deductions that reduce net revenue and profitability.

%
%
%
USD / garment

Order profit

units

Results

Estimated selling price and profitability based on the current inputs.

Enter your pricing inputs and click Calculate to see selling price and profitability.

How to use this tool

  1. Choose your currency and unit system.
  2. Import or enter production cost per garment.
  3. Choose whether pricing is based on markup or margin.
  4. Add discounts, commissions, payment fees, and freight-out.
  5. Enter order quantity if you want to estimate total profit.
  6. Click Calculate to review price, net revenue, margin, and profit.

What this tool estimates

This tool estimates selling price per garment, net revenue per garment, profit per garment, total profit, target price margin, realized net margin, and markup on cost. It is intended for apparel pricing preparation and profitability analysis.

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Frequently Asked Questions

What is the difference between markup and margin?
Markup is measured over cost, while margin is measured over selling price. They are related, but the same percentage does not produce the same selling price.
Why can realized margin differ from target margin?
Target margin is based on the nominal selling price. Realized margin can be lower because discounts, commissions, payment fees, and freight-out reduce the revenue and profit actually kept per garment.
What is net revenue per garment?
Net revenue per garment is the amount remaining after applying commercial deductions such as discount, commission, and payment fees to the selling price.
Should freight-out be included in pricing?
Yes, if outbound freight or delivery cost is paid by the seller. It is usually allocated per garment and deducted when calculating profit per garment.
How should I use the calculated selling price?
The calculated selling price can be used as a planning reference. Final prices should be validated with market conditions, customer expectations, taxes, commercial terms, and internal margin targets.