Quick answer
What does FOB price include?
FOB (Free On Board) includes all costs to manufacture and deliver goods onto the vessel at the port of loading, plus the seller's profit.
Cost = (Fabric + Trims + CM + Other) × (1 + Overhead%)
How it works
FOB Price Calculator
A fast way to turn a summarised cost into an FOB quote — ideal when you already know fabric, trims and CM per piece.
Overhead and profit are added on cost, and the result is grossed up so that commission calculated on the FOB price is fully covered.
Formula
The formula, in full
- Cost
- (Fabric + Trims + CM + Other) × (1 + Overhead%)
- FOB
- Cost × (1 + Profit%) ÷ (1 − Commission%)
Example
Knit polo
- 01Direct = $3.80
- 02Cost incl. 6% OH = $4.028
- 03FOB = 4.028 × 1.10 ÷ 0.95 = $4.664
Use “Load Example” above to run this example in the calculator.
Industry tip
Industry tip
“Keep a minimum FOB per product family. If a target price falls below it, change the product, not the margin.”
Assumptions
What this calculator assumes
- Commission is on FOB.
- Profit is on cost.
FAQ
Frequently asked questions
What does FOB price include?
FOB (Free On Board) includes all costs to manufacture and deliver goods onto the vessel at the port of loading, plus the seller's profit.