Quick answer
How do you calculate garment costing?
Add fabric (price × consumption × wastage), trims, processing, CMT, packaging and other charges per piece; add overhead; add profit; then gross up for commission to get the FOB price.
Fabric / piece = Fabric cost × Consumption × (1 + Wastage%)
How it works
Garment Costing Calculator
Build a complete garment cost sheet the way merchandisers do — fabric, trims, processing, manufacturing, packaging and overheads — then add profit and buying-house commission to arrive at a defensible FOB price.
Every cost is converted to a per-piece figure. Direct costs are summed, factory overhead is added as a percentage, and profit is added on total manufacturing cost. Because buying-house commission is normally a percentage of the final FOB price, the price is grossed up so that the commission is fully covered.
Formula
The formula, in full
- Fabric / piece
- Fabric cost × Consumption × (1 + Wastage%)
- Direct cost
- Fabric + Trims + Processing + Manufacturing + Packaging + Testing + Inspection + Transport
- Overhead
- Direct cost × Overhead%
- Total manufacturing cost
- Direct cost + Overhead
- Profit
- Total manufacturing cost × Profit%
- FOB price
- (Total cost + Profit) ÷ (1 − Commission%)
- Commission
- FOB × Commission%
- Order value
- FOB × Order quantity
Example
Men's linen shirt, 10,000 pcs
- 01Fabric = 185 × 1.65 × 1.03 = ₹314.41
- 02Direct cost = 314.41 + 18 + 20 + 65 + 9 + 7.5 = ₹433.91
- 03Total cost incl. 8% overhead = ₹468.62
- 04Profit 12% = ₹56.23 → FOB = 524.86 ÷ 0.95 = ₹552.48
Use “Load Example” above to run this example in the calculator.
Industry tip
Industry tip
“Cost on the fabric you will actually buy: wastage, shrinkage and shade bands belong in the fabric line — not hidden in overhead — so buyers can see and accept them.”
Assumptions
What this calculator assumes
- Commission is calculated on the FOB price (price is grossed up by 1 ÷ (1 − commission%)).
- Profit is calculated on total manufacturing cost (cost-plus), not on selling price.
- Overhead is applied to all direct costs, including fabric.
- All costs are per piece in the selected currency; no exchange conversion is applied.
FAQ
Frequently asked questions
How do you calculate garment costing?
Add fabric (price × consumption × wastage), trims, processing, CMT, packaging and other charges per piece; add overhead; add profit; then gross up for commission to get the FOB price.
What is included in a garment cost sheet?
Fabric, trims and accessories, wash/print/embroidery, cut-make-trim, packing, testing, inspection, inland transport, overhead, commission and profit.
Is commission calculated on FOB or on cost?
Buying-house commission is usually a percentage of the FOB price paid by the buyer, which is why this calculator grosses the price up rather than adding commission on cost.
What profit margin do garment exporters use?
It varies widely by product and buyer; many exporters target 8–15% on cost for basics and more for value-added products. Always use your own commercial policy.