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Retail math · Apparel-specific

Retail Math Formulas for Apparel Brands

The retail math every apparel planner, buyer, allocator, merchandiser, and executive uses — with live calculators, benchmark ranges by channel, and worked apparel examples.

Formulas
40+
Live calculators
Every page
Channel benchmarks
4 channels
Roles covered
8
How the formulas chain

Plan → Buy → Allocate → Measure — the formulas, connected.

Each stage's math feeds the next. OTB sizes the buy; the buy populates the allocation; allocation drives sell-through; sell-through calibrates the next OTB. Click any formula to see its live calculator and channel benchmarks.

The loop closes. Measurement formulas (sell-through, WOS, markdown) feed back into the next period's plan — calibrating OTB, receipt timing, and buy depth. A connected system runs this loop weekly; a spreadsheet runs it once a season.

Role
Category
40 formulas
InventoryPlanner
Open-to-Buy (OTB)
OTB = Planned Sales + Planned EOP + Planned Markdowns − Planned BOP − Receipts on Order
MarginMerchandiser
Initial Markup % (IMU)
IMU % = (Retail Price − Cost) ÷ Retail Price × 100
MarginMerchandiser
Maintained Markup % (MMU)
MMU % = (Net Sales − COGS) ÷ Net Sales × 100
ProductivityAnalytics
Sell-Through Rate
Sell-Through % = Units Sold ÷ Units Received × 100
ProductivityExecutive
Gross Margin Return on Investment (GMROI)
GMROI = Gross Margin $ ÷ Average Inventory at Cost
InventoryPlanner
Weeks of Supply (WOS)
WOS = On-Hand Units ÷ Average Weekly Unit Sales
InventoryPlanner
Forward Weeks of Supply (FWOS)
FWOS = On-Hand Units ÷ Forecasted Average Weekly Unit Sales
ProductivitySupply Chain / Ops
Inventory Turns
Turns = COGS ÷ Average Inventory at Cost
InventoryAllocator
Fill Rate
Fill Rate % = Units Shipped ÷ Units Ordered × 100
MarginMerchandiser
Markdown %
Markdown % = Markdown $ ÷ Net Sales × 100
MarginDesigner / Product Dev
Target Costing
Target Cost = Retail Price × (1 − Target IMU %)
InventoryDesigner / Product Dev
Total Line Count (Styles × Colors)
Total SKUs = Styles × Colors × Sizes
MarginDesigner / Product Dev
Cost-to-Ticket Ratio
Cost-to-Ticket = Cost ÷ Retail Price
InventoryDesigner / Product Dev
Style-Color Depth
Units per Style-Color = Total Buy Units ÷ (Styles × Colors)
MarginMerchandiser
Gross Margin %
Gross Margin % = (Net Sales − COGS) ÷ Net Sales × 100
MarginMerchandiser
Allowances %
Allowances % = (Markdowns + Discounts + Chargebacks) ÷ Gross Sales × 100
SalesMerchandiser
Category Mix %
Category Mix % = Category Sales ÷ Total Sales × 100
InventoryPlanner
Stock-to-Sales Ratio (SSR)
SSR = Beginning-of-Period Inventory ÷ Sales for Period
InventoryPlanner
Receipt Plan
Receipts = Sales + EOP + Markdowns − BOP
ProductivityPlanner
Plan vs Actual Variance %
Variance % = (Actual − Plan) ÷ Plan × 100
InventoryPlanner
Beginning-of-Period (BOP) Inventory
BOP (Period N) = EOP (Period N−1)
InventoryPlanner
End-of-Period (EOP) Inventory
EOP = BOP + Receipts − Sales − Markdowns
SalesBuyer
Average Unit Cost (AUC)
AUC = COGS ÷ Units Sold (or Inventory at Cost ÷ Units On Hand)
SalesAnalytics
Average Unit Retail (AUR)
AUR = Net Sales ÷ Units Sold
InventoryBuyer
Buy Quantity (Units)
Buy Units = (Sales Forecast Units + EOP Target − BOP) ÷ (1 − Expected Markdown %)
InventoryBuyer
PO Coverage %
PO Coverage % = Units on Order ÷ Units Needed × 100
InventoryBuyer
Size Curve Allocation
Units per Size = Total Buy × Size % from Curve
SalesAllocator
Door-Level Demand Index
Door Index = Door Sales ÷ Average Door Sales
InventoryAllocator
Fair-Share Allocation
Door Units = Total Allocation × (Door Demand ÷ Chain Demand)
InventoryAllocator
Replenishment Trigger Point
Trigger = (Lead Time in Weeks × Average Weekly Sales) + Safety Stock
InventoryAllocator
Safety Stock
Safety Stock = Average Weekly Demand × Safety-Days Coverage ÷ 7
MarginSupply Chain / Ops
Cost of Goods Sold (COGS)
COGS = BOP Inventory + Purchases − EOP Inventory (all at cost)
InventorySupply Chain / Ops
Inventory Accuracy %
Accuracy % = 1 − |System Count − Physical Count| ÷ System Count
SalesAnalytics
Average Dollar Sales (ADS) per Transaction
ADS = Net Sales ÷ Number of Transactions
SalesAnalytics
Units per Transaction (UPT)
UPT = Units Sold ÷ Number of Transactions
SalesAnalytics
Return Rate %
Return Rate % = Return Units ÷ Gross Sales Units × 100
GrowthAnalytics
Comparable Store Sales (Comps) %
Comps % = (Current Period Sales − Prior Period Same-Store Sales) ÷ Prior × 100
ProductivityExecutive
Working Capital Tied in Inventory
Working Capital = Average Inventory at Cost × (Days Held ÷ 365)
MarginExecutive
EBITDA Impact of Markdown
EBITDA Hit = Incremental Markdown $ × (1 − Tax Shield)
SalesExecutive
Gross-to-Net Sales
Net Sales = Gross Sales − Returns − Allowances
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Frequently asked

What are the most important retail math formulas for apparel brands?

Open-to-buy (OTB), initial markup (IMU), maintained markup (MMU), sell-through rate, GMROI, weeks of supply (WOS), inventory turns, fill rate, and markdown percent are the core formulas every apparel planning team uses. They govern how much to buy, at what cost, how fast inventory moves, and how much margin survives.

How are apparel retail math formulas different from general retail formulas?

The formulas are the same. The benchmark ranges are not. Apparel sell-through is split between full-price and total, size curves create depth-by-size complexity spreadsheet-based retail cannot model, and seasonal IMU targets run higher because markdown exposure is heavier. Every formula on this page includes apparel-specific benchmark ranges.

Why do apparel brands need a calculator on every formula?

Static equations are a reference. Live calculators turn the reference into a decision tool — plug in your plan numbers and see the result against the apparel benchmark range for your channel.

Turn the math into action.

RetailNorthstar calculates, tracks, and flags these metrics inside a connected apparel planning workflow — so teams act on them instead of rebuilding them in spreadsheets.