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Garment cost builds from fabric, trims and CMT, then adds factory overhead and margin to reach an FOB price. Material typically accounts for 60-70% of direct cost, which is why fabric consumption and marker efficiency dominate cost reduction rather than sewing minutes.
Garment costing
Direct cost = fabric + trims + CMT; FOB = direct cost x (1 + overhead and margin %)
Cutting, sewing, finishing, packing labour and the direct factory cost of those operations. It is usually derived from SAM x cost per minute / line efficiency.
No. FOB excludes freight, insurance, duty, agent commission and inland transport at destination. Landed cost is commonly 15-35% above FOB depending on route and tariff.