{
    "name": "Apparel Gross Margin Calculator",
    "url": "https://calculators.geekmidst.com/calculators/apparel-gross-margin-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/apparel-gross-margin-calculator.md",
    "category": "Textile & apparel",
    "description": "Work out a fashion buy’s gross margin after markdowns from units bought, landed cost, full price, sell-through at full and reduced price, and markdown depth.",
    "summary": "Fashion margin is planned at the initial markup but realised after markdowns. Enter how much of the buy sells at full price and how much on markdown to see the margin you actually keep.",
    "also_called": [
        "Fashion margin calculator",
        "Maintained margin calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "units",
            "label": "Units bought",
            "type": "number",
            "default": "1000"
        },
        {
            "name": "unit_cost",
            "label": "Landed cost per unit",
            "type": "number",
            "default": "12"
        },
        {
            "name": "price",
            "label": "Full selling price (excl. sales tax)",
            "type": "number",
            "default": "40"
        },
        {
            "name": "full_pct",
            "label": "Sold at full price",
            "type": "number",
            "default": "60",
            "unit": "% of units"
        },
        {
            "name": "md_pct",
            "label": "Sold on markdown",
            "type": "number",
            "default": "30",
            "unit": "% of units",
            "optional": true
        },
        {
            "name": "markdown",
            "label": "Average markdown",
            "type": "number",
            "default": "40",
            "unit": "% off",
            "optional": true
        },
        {
            "name": "unsold",
            "label": "Unsold stock",
            "type": "segmented",
            "default": "inventory",
            "options": {
                "inventory": "Keep as stock",
                "write_off": "Write off"
            }
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "gross_margin_pct",
            "label": "Gross margin",
            "format": "percent"
        },
        {
            "key": "gross_margin",
            "label": "Gross margin amount",
            "format": "currency"
        },
        {
            "key": "revenue",
            "label": "Net sales",
            "format": "currency"
        },
        {
            "key": "cogs",
            "label": "Cost of goods sold",
            "format": "currency"
        },
        {
            "key": "initial_markup_pct",
            "label": "Initial markup (on price)",
            "format": "percent"
        },
        {
            "key": "markdown_cost",
            "label": "Markdown cost",
            "format": "currency"
        },
        {
            "key": "sell_through",
            "label": "Sell-through",
            "format": "percent"
        },
        {
            "key": "unsold_units",
            "label": "Unsold units",
            "format": "number"
        }
    ],
    "formula": {
        "text": "Sales = Full units × Price + Markdown units × Price × (1 − Markdown%);  COGS = Units sold (or all units if written off) × Cost;  GM% = (Sales − COGS) ÷ Sales",
        "variables": {
            "IMU": "initial markup on retail: (Price − Cost) ÷ Price",
            "Sell-through": "share of units bought that sold"
        }
    },
    "worked_example": {
        "inputs": {
            "units": "1000",
            "unit_cost": "12",
            "price": "40",
            "full_pct": "60",
            "md_pct": "30",
            "markdown": "40",
            "unsold": "inventory",
            "currency": "USD"
        },
        "steps": [
            "Full price: 600 × 40 = 24,000. Markdown: 300 × 24 = 7,200. Sales = 31,200.",
            "COGS = 900 sold × 12 = 10,800.",
            "Gross margin = 20,400 ÷ 31,200 = 65.38%, against an initial markup of 70%."
        ],
        "result": "Markdowns cut the margin from a 70% initial markup to 65.4% realised, with 100 units left in stock."
    },
    "interpretation": "The gap between initial markup and realised margin is the cost of markdowns. Writing off unsold stock shows the margin if the leftovers have no value.",
    "assumptions": [
        "Prices and sales exclude VAT or sales tax.",
        "All markdown sales are at the one average markdown."
    ],
    "limitations": [
        "Returns, shrinkage, promotions and staff discounts are not included."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "What is the difference between markup and margin?",
            "answer": "Markup is profit over cost; margin is profit over price. Fashion retailers usually quote markup on retail, which is the same calculation as margin."
        },
        {
            "question": "Why keep unsold stock as inventory?",
            "answer": "Under standard accounting, unsold units stay on the balance sheet at cost until sold or written down, so they are not in COGS."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "Garment Export FOB Price Calculator",
            "url": "https://calculators.geekmidst.com/calculators/garment-export-fob-price-calculator"
        },
        {
            "name": "Profit Margin Calculator",
            "url": "https://calculators.geekmidst.com/calculators/profit-margin-calculator"
        },
        {
            "name": "Markup Calculator",
            "url": "https://calculators.geekmidst.com/calculators/markup-calculator"
        },
        {
            "name": "Margin Calculator",
            "url": "https://calculators.geekmidst.com/calculators/margin-calculator"
        }
    ],
    "disclaimer": null,
    "publisher": "GM¹X CalcVerse"
}