Garment Cost Calculator for Fashion

Garment Cost Calculator — Fashion Costing Tool — Modanomics

Garment Cost Calculator

The most comprehensive free garment cost calculator for fashion — covering fabric yield, CMT, freight, duty, and full pricing output in one tool.

This garment cost calculator is built for fashion designers, buyers, founders, and merchandisers who need accurate landed cost per unit before setting prices. To get started, enter your order quantity, fabric details, and production costs below. The calculator accounts for fabric wastage, duty on FOB, and split freight. Furthermore, it gives you pricing outputs across wholesale, RRP, and DTC channels simultaneously. Press Calculate to see your full cost breakdown and suggested prices instantly.

Enter your garment cost details

Order details

All costs entered in this currency
Order quantity — affects total freight per unit

Fabric cost

$
Cost per metre from supplier
Metres needed per finished garment
%
Typical apparel wastage: 10–20%

Production costs (per unit)

$
Labour cost per garment at factory
$
Buttons, labels, zips, thread etc.
$
Hangtags, polybags, boxes

Freight (total order cost — divided by units automatically)

$
Factory → port/warehouse. Enter total order cost.
$
Warehouse → store/customer. Enter total order cost.

Duty & agent costs

%
Applied on FOB cost (fabric + CMT + trims)
%
Applied on FOB cost — typically 3–8%
$
Testing, compliance, insurance etc.

Pricing method and sales channel

Pricing method

%
%

Sales channel

%
10% Australia · 20% UK · 15% NZ · 0 if ex-tax pricing
Please enter fabric cost, usage, CMT, and units produced at minimum.

Cost breakdown

FOB Cost / Unit
fabric + CMT + trims
Duty + Agent / Unit
on FOB cost
Freight / Unit
int + dom ÷ units
Landed Cost / Unit
true cost per garment
Cost component breakdown
Fabric (incl. wastage)
CMT
Trims & accessories
Freight (int + dom)
Duty
Agent commission
Packaging

Suggested pricing

Total order value

Garment Cost Calculator — Key Formulas

The garment cost calculator above uses these formulas to build your landed cost. Understanding each one helps you identify where costs can be reduced and where margins are at risk.

True Fabric Cost
( Metres × Cost/m ) ÷ ( 1 − Wastage% )
Fabric is never 100% efficient. In addition, typical apparel wastage runs 10–20% depending on pattern complexity. As a result, ignoring yield inflates your margin and significantly understates your true cost per garment.
FOB Cost
Fabric + CMT + Trims + Packaging
Free on Board cost is what you pay the factory before freight and duty. Furthermore, duty and agent commission are typically calculated as a percentage of FOB rather than total landed cost. Therefore, always isolate your FOB figure before applying duty rates.
Landed Cost
FOB + Duty + Agent + Freight + Other
The true cost per unit to your business after all charges have been applied. As a result, landed cost is the correct base for all margin and pricing calculations. In other words, never use FOB cost alone to set your wholesale price or RRP.
Freight Per Unit
Total Freight ÷ Units Produced
Freight is a shared cost spread across the entire order. Therefore, larger order quantities reduce freight per unit significantly — one of the key economic benefits of scaling your MOQ. Consequently, modelling different order sizes in the garment cost calculator can reveal meaningful cost savings.

Garment Cost Calculator — Worked Examples

Four real-world garment costing scenarios showing how landed cost is built from fabric through to RRP. Furthermore, use these to sense-check your own numbers against industry norms.

👗
Woven Midi Dress
Womenswear · 500 units
Fabric (2.2m × $6, 15% wastage)$15.53
CMT$7.50
Trims + packaging$1.80
FOB cost$24.83
Duty (10%) + freight/unit$4.48
Landed cost$29.31
Wholesale (50% GM)$58.62
RRP (62% GM)$154.26
👕
Basic Tee (Private Label)
Basics · 1,000 units
Fabric (1.4m × $4, 12% wastage)$6.36
CMT$3.50
Trims + packaging$0.80
FOB cost$10.66
Duty (5%) + freight/unit$1.53
Landed cost$12.19
Wholesale (50% GM)$24.38
RRP (60% GM)$60.95
🧥
Wool Overcoat
Outerwear · 200 units
Fabric (3.5m × $28, 18% wastage)$119.51
CMT$32.00
Trims + packaging$5.50
FOB cost$157.01
Duty (12%) + freight/unit$28.04
Landed cost$185.05
Wholesale (45% GM)$336.45
RRP (58% GM)$801.07
🩱
Activewear Legging
Activewear · 800 units
Fabric (1.1m × $14, 10% wastage)$17.11
CMT$6.00
Trims + packaging$1.20
FOB cost$24.31
Duty (7.5%) + freight/unit$3.82
Landed cost$28.13
Wholesale (48% GM)$54.10
RRP (62% GM)$142.37

Garment Costing Benchmarks by Fashion Category

Typical cost structures vary significantly across categories. Therefore, use these benchmarks alongside the garment cost calculator to sense-check your own breakdown before finalising prices.

CategoryFabric % of costCMT % of costTypical wastageTypical dutyLanded vs FOB
Womenswear (woven)45–55%25–35%12–18%8–12%+20–30%
Knitwear50–60%20–30%8–12%10–15%+25–35%
Activewear40–50%25–35%8–12%5–10%+18–25%
Outerwear55–65%20–28%15–22%10–14%+20–30%
Basics / Jersey40–50%25–35%8–14%5–8%+15–22%
Denim45–55%22–30%10–15%8–12%+18–25%
Accessories (fabric)30–45%20–30%15–25%5–10%+15–22%

Apparel Costing in Practice — How to Use Your Results

A garment cost calculator is useful far beyond just setting a price. In fact, here are five situations where accurate costing has the biggest commercial impact.

✂️
Pre-season Design
Cost new styles before finalising specs. If the landed cost does not support your target margin, consequently you can adjust fabric or CMT before committing to a sample.
Cost before you commit to samples
🤝
Supplier Negotiation
Know your maximum CMT and fabric cost before entering any negotiation. Furthermore, a costed BOM gives you a factual basis for pushing back on price increases rather than relying on instinct.
Always enter with a target cost
📦
MOQ Planning
Model how freight per unit changes as order quantity increases. In addition, larger MOQs reduce per-unit overhead. As a result, your landed cost improves significantly at scale.
Model 3 MOQ scenarios
💱
Duty Optimisation
Duty rates vary significantly by country of origin and product classification. Therefore, understanding your duty base helps identify sourcing alternatives. For example, FTA agreements can reduce duty to zero for certain origin countries.
Check FTA country rates
📊
Range Reviews
Compare landed cost and margin across all styles in your range. Consequently, styles with poor cost-to-price ratios are candidates for re-costing or delisting at the next range review.
Flag styles below target GM

Garment Cost Calculator — FAQs

Direct answers to the most common questions about garment costing in fashion — written for designers, buyers, founders, and students.

Garment cost calculator fundamentals

What is a garment cost calculator used for?+

A garment cost calculator is used to calculate the true landed cost per unit of a garment — that is, the total cost of producing and delivering a style to your warehouse, ready for sale. It accounts for all cost components including fabric, CMT, trims, freight, duty, and agent fees.

In fashion, the landed cost is the foundation of all pricing decisions. Without an accurate landed cost, you cannot reliably calculate wholesale price, RRP, or gross margin. Furthermore, a garment cost calculator helps identify which cost components are driving your price up, so you can negotiate or redesign more effectively.

What is FOB cost in fashion costing?+

FOB stands for Free on Board. In fashion, FOB cost is the price you pay the factory for the finished garment, ready to be loaded onto the ship at the origin port. It includes fabric, CMT, trims, and packaging — but does not include international freight, duty, or any costs incurred after the goods leave the factory.

FOB cost is important because duty and agent commission are typically calculated as a percentage of FOB, not the total landed cost. As a result, your garment cost calculator should always separate FOB from landed cost to ensure accurate duty calculations.

Fabric yield, wastage, and garment costing accuracy

What is fabric wastage and why does it matter?+

Fabric wastage refers to the percentage of fabric that cannot be used during the cutting process due to pattern placement, selvedges, and end-of-roll offcuts. In apparel manufacturing, typical wastage rates range from 8% for simple jersey styles to 20% or more for complex woven patterns.

Wastage matters because it directly increases the true fabric cost per garment. For example, if you need 1.5 metres of fabric per garment but your yield efficiency is only 85%, your actual fabric consumption is 1.5 divided by 0.85, which equals 1.76 metres. Therefore, ignoring wastage can significantly understate your cost and overstate your margin.

How do I reduce fabric wastage in my garment costing?+

There are several practical approaches to reducing fabric wastage. First, work with your pattern maker to optimise the marker layout — small adjustments to pattern pieces can sometimes reduce wastage by 3–5 percentage points. Second, consider fabric width when sourcing; wider fabrics often yield better efficiency.

In addition, off-cuts can sometimes be used for trims, patches, or secondary styles, effectively recovering cost from waste. Furthermore, digital marker planning software used by CMT factories can provide accurate wastage estimates before you commit to a bulk order, giving you more reliable inputs for your garment cost calculator.

Pricing methods for fashion garment costing

What is keystone pricing in fashion?+

Keystone pricing is a simple method where the wholesale price is set at double the landed cost — a 100% markup, which equals a 50% gross margin. It is a common starting point in fashion wholesale because it is easy to apply consistently across a range and gives the retailer a reasonable margin to work with.

However, keystone pricing does not account for category differences, market positioning, or the retailer's own margin requirements. As a result, many brands use margin-based or markup-based pricing instead, which gives more control over the full price architecture from cost through to RRP.

How does order quantity affect landed cost per unit?+

Order quantity has a significant impact on landed cost per unit, primarily through freight. International and domestic freight costs are largely fixed per shipment regardless of how many units are in the order. Therefore, doubling your order quantity roughly halves your freight cost per unit.

In addition, larger orders often attract lower fabric prices and CMT rates from suppliers, as factories prefer longer production runs. Furthermore, duty is calculated as a percentage of FOB cost and does not change with volume — making freight the primary lever for reducing landed cost through scale.



Watch: Garment Cost Calculator Walkthrough

A practical walkthrough of garment costing for fashion designers and founders — covering fabric yield, FOB, duty, and landed cost in plain English.

Garment Costing for Fashion — Full Breakdown Modanomics · Free lesson
🎬 Modanomics on YouTube · Fashion Business Education

Free Resource · Modanomics

Get the Garment
Costing Template

A free PDF costing sheet and companion guide to this garment cost calculator — includes a BOM template, duty rate reference table, and fabric yield guide.

BOM costing template Duty rate reference by country Fabric yield guide by category CMT benchmarks by product type

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