Initial markup calculator
The margin you set before anything erodes it.
Formula
Initial markup % = ((retail price − cost) ÷ retail price) × 100
Runs in your browser. Nothing is sent anywhere.
Initial markup
63.0%
initial markup
Worked example
A $49.99 retail on a $18.50 cost is a 63.0% initial markup. Realized gross margin will land below it, and the gap is whatever markdowns, allowances, and deductions take back before the season closes.
When you reach for this
What you set at the line-review table. The gap between this and realized gross margin is everything markdowns, allowances, and deductions took back.
How to read the number
Price this against your landed cost, not your invoice cost. Freight and duties routinely take several points out of an IMU that looked comfortable on the supplier quote.
Metrics that travel with it
Questions operators ask about this metric
How does markup differ from margin?
Markup measures the spread against cost; margin measures it against retail. A 63% markup is not a 63% margin, and quoting one where the other belongs is an expensive habit.
Which cost should I mark up from?
Landed cost. Marking up from the supplier invoice quietly hands the freight, the duty, and the inbound handling to your margin, and none of it surfaces until the season closes.
Why does realized margin always come in lower?
Markdowns, allowances, damages, and deductions all land after you set the price. Initial markup is the ceiling, and everything that follows is subtraction.
What should I set the markup against?
The planned markdown cadence for the category. Setting it off last season’s realized margin bakes last season’s mistakes into this season’s price.
Stop calculating this by hand
Every number on this page comes out of data you already have — orders, shipments, inventory, deductions. Endless keeps those in one source of truth instead of four exports, so the metric updates on its own and agents watch it for you.