Average Markup On Clothing is the amount that a retailer adds to the cost of an item of clothing in order to make a profit. It’s calculated by taking the total cost of the clothing divided by the original cost, and then multiplying it by 100. This number allows retailers to adjust their markup on items of clothing depending on how much they need to recoup from their costs. Knowing this number helps retailers accurately set the price point for their merchandise, ensuring they stay competitive and profitable.