How the cost is built
- Direct cost = fabric + trims + decoration + cut, make and trim labour + packaging
- Factory cost = direct cost × (1 + overhead %)
- FOB price = factory cost × (1 + factory margin %)
- Landed cost = FOB price + freight per unit + import duty (duty % × FOB price)
The default numbers are placeholders to show the method. Replace every one with figures from your own quotes.
Notes on duty
Duty rates depend on your country, the garment type and the fibre. Some countries charge duty on the FOB value and others on the value including freight and insurance. Check your customs tariff and treat the result here as an estimate. See the Incoterms guide for what each quote type includes.
Once you know the landed cost, set your selling price with the wholesale price calculator.
Common questions
What is CMT?
Cut, make and trim: the labour of cutting the fabric, sewing the garment and finishing it, excluding the cost of materials.
What is the difference between FOB and landed cost?
FOB is the price of the goods loaded for export. Landed cost adds freight, insurance and import duty, giving what each unit costs by the time it reaches you.