Find the sell-through a clothing style or collection needs to cover its sampling, patterns, photography and production costs.
Launching a style means paying for sampling, patternmaking, photography and a factory order before you sell a single piece, and whatever does not sell at full price usually ends up in clearance. This Apparel Search planner shows the sell-through you need to break even, the profit at the sell-through you expect, and the lowest price that still covers your costs. It is built for clothing and accessory brands, designers and buyers. Everything runs in your browser, and nothing you enter is saved.
Please read: this is a planning tool, not a forecast. It turns the costs, price and sell-through you enter into a break-even point. It cannot know how your style will sell, and sell-through in fashion depends on trend, season, price, fit and marketing. Use landed costs from your own quotes, test lower sell-through figures, and confirm numbers with your accountant or adviser. The starting figures are examples.
Your style or collection
Use the Landed Cost Calculator for your landed cost per unit. Sell-through is the share of the units you produced that sell at full price. The rest are assumed to clear at the percentage above.
One-time costs
Break-even results
Estimates only. This is not a sales forecast. Confirm with your own records and advisers.
How to calculate break-even for a clothing line
Enter the units you plan to produce, your landed cost per unit and your selling price.
Add other per-unit costs, payment fees and what unsold units recover at clearance.
List the one-time costs: sampling, patternmaking and grading, photography and lookbook, website and tech packs.
Read the break-even sell-through, test different sell-through levels in the table, and download the plan.
How break-even sell-through is calculated, with an example
Formula. Profit = units sold at full price x (price - per-unit costs) + unsold units x clearance value - production cost - one-time costs. Because profit rises in a straight line with sell-through, the break-even sell-through is the point where profit is zero.
Illustrative example (made-up figures). A designer makes 500 jackets at a landed cost of $10.89 and sells them for $45. Other costs are $4.00 per unit sold plus 3% fees ($5.35 in total per unit sold), unsold units clear at 40% of price ($18), and one-time costs are $6,000 (sampling $1,500, patterns $1,200, photography $1,800, website and marketing $1,500). Break-even sell-through is about 22.6%, or roughly 113 jackets. At 70% sell-through the profit is about $5,132.50, and at 100% about $8,380. To break even at 70% sell-through, the price could be as low as about $32.15.
Key terms
Sell-through: the share of units you produced that sell at full price.
Break-even point: the sales level where total revenue equals total costs, so profit is zero.
Landed cost: the cost of a unit delivered to your warehouse, including freight, duty and fees.
One-time costs: costs that do not scale with quantity, such as samples, patterns and photography.
Clearance recovery: what unsold units earn when marked down or sold off-price.
Wholesale vs direct price: the price a retailer pays you compared with the price a shopper pays, which changes your margin.
Getting the most from the collection break-even planner
Use landed cost, not factory price. Freight, duty and fees can add a large share to apparel costs.
Count every one-time cost. Sampling rounds, patternmaking, photography and tech packs add up.
Test pessimistic sell-through. Try 40% and 50% to see how much a slow season would cost you.
Use the right price. Wholesale and direct-to-consumer prices give very different results, so run both.
Allow for returns. If you sell online, returns reduce effective sell-through.
Frequently asked questions
What is break-even for a fashion collection?
It is the sell-through, or number of units sold, at which a style or collection has earned back its development, production and selling costs. Beyond that point each additional sale adds profit.
How do I choose a sell-through percentage?
Use your own history for similar styles, seasons and channels. If you have none, test a range of values to see how sensitive your result is.
Why include clearance value for unsold units?
Most fashion brands do not throw unsold units away. They mark them down or sell them off-price, so ignoring that value would overstate your loss. You can set it to 0 for a stricter view.
Related Apparel Search tools
Landed Cost Calculator: add freight, duty and fees, then set wholesale and retail prices.
Garment Cost Sheet: build up the cost of one garment from fabric, trims and labor.
Estimates only. This tool is provided for general planning and informational purposes. Results depend on the information you enter and on assumptions that may not match your business. Apparel Search does not guarantee accuracy or completeness of any result. Confirm figures with your own records, suppliers, accountant or other qualified professionals before making business decisions. See our Legal page for terms of use.