How to use this calculator
- Enter or choose fabric consumption per garment.
- Enter or choose fabric price per unit.
- Enter or choose fabric wastage.
- Enter or choose trims and accessories per garment.
- Enter or choose cut and make (CM) per garment.
- The price per garment (FOB) updates as you type. Use Copy result or Share to keep it.
Method
Fabric = Consumption × (1 + Wastage%) × Price; Direct = Fabric + Trims + CM + Processes + Other; Cost = Direct × (1 + Overhead%); Price = Cost ÷ (1 − Margin%)
- CM
- cut and make (sewing) charge
- Overhead%
- factory and admin overheads as a share of direct cost
- Margin%
- profit as a share of the selling price
Worked example
- Fabric = 1.5 × 1.05 × 4.00 = 6.30.
- Direct cost = 6.30 + 1.20 + 2.50 + 0.80 + 0.40 = 11.20; overheads 10% = 1.12; total 12.32.
- Price = 12.32 ÷ (1 − 0.12) = 14.00 per piece, 168.00 per dozen.
The garment costs 12.32 to make and should be priced at 14.00 FOB to earn a 12% margin.
What the result means
A margin on price is not the same as a markup on cost: a 12% margin is a 13.6% markup. Buyers usually negotiate on the FOB price, so know your total cost before you discount.
Assumptions and limits
- All costs are per garment in one currency; every rate is your own input.
- Overheads are a percentage of direct cost.
- Margin is profit divided by the selling price.
- Duties, buying commission and payment terms are not included unless you add them to “other”.
Questions
What is CM in garment costing?
Cut and make: the factory’s charge for cutting, sewing and finishing, usually worked out from the garment SMV and the cost per minute.
Why divide by (1 − margin) instead of multiplying?
Dividing makes the profit a percentage of the price. Multiplying cost by 1.12 would give only a 10.7% margin.