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Garment Costing Calculator
Full garment cost sheet — fabric, trims, CM, overhead and profit.
CostNest Calculator
Export Cost Calculator — Total Shipment Cost (CIF)
Calculate the full CIF export cost per garment — production, sea freight, marine insurance, import duty, port charges, agent commission, bank charges and profit. Covers Incoterms 2020 CIF structure for Bangladesh RMG exporters. No account needed — numbers update as you type.
CIF calculations are estimates. Actual freight rates, duty percentages and port charges vary by destination, season and carrier. Always confirm with your freight forwarder, customs broker and bank before quoting a buyer on CIF terms.
Step By Step
How to Use This Calculator
8 steps
- Enter your ex-factory or FOB production cost per piece — include all manufacturing cost and profit already built into that price.
- Enter total sea freight for the full shipment and the order quantity to get the per-piece freight cost.
- Set marine insurance as a percentage — standard ICC minimum cover is 0.3–0.8% of CIF value.
- Enter import customs duty rate for the destination country (check WTO Tariff Download Facility or the buyer's customs broker).
- Enter total port and handling charges for the shipment, split across order quantity.
- Add buying agent commission and bank/LC charge percentages.
- Set your target profit margin on the CIF price.
- The calculator outputs a full CIF breakdown per unit.
Worked Example
Worked example — knit T-shirt to UK, CIF Felixstowe
Use this sample to sanity-check your inputs and understand what the final result represents.
- 1FOB production cost: $5.50/pc · Order: 10,000 pcs
- 2Sea freight Chittagong → Felixstowe: $1,800 total ($0.18/pc)
- 3Marine insurance (Clauses A, 0.5%): $0.03/pc
- 4UK import duty (knit garments, CN 6109): 12% · Port charges: $300 total ($0.03/pc)
- 5Agent commission: 5% · Bank/LC charges: 0.5% · Profit: 12%
Final Result
Total CIF per piece: $8.14 (freight $0.18 · insurance $0.03 · duty $0.66 · charges $0.33 · profit $0.87).
Methodology
CIF Formula — Incoterms 2020 + WTO tariff structure
This section explains the calculation logic, assumptions, and source material used to make the result more trustworthy and easier to verify.
Direct Landed Cost = Production Cost + Freight/unit + Insurance/unit + Duty/unit + Port Charges/unit. Agent Commission = Direct Cost × Agent%. Bank Charges = Direct Cost × Bank Rate%. Pre-Profit Total = Direct + Agent + Bank. Profit = Pre-Profit × Profit%. CIF Price = Pre-Profit + Profit. Under Incoterms 2020 CIF (ICC Rule, p. 110), seller provides minimum insurance (Institute Cargo Clauses C). Import duty rates: WTO Tariff Download Facility (tariffdata.wto.org); EU TARIC database (ec.europa.eu/taxation_customs/dds2/taric). Bangladesh EBA status: EU GSP Regulation 978/2012 (duty-free under EBA for LDCs).
Practical Guidance
Managing export costs — what exporters track closely
- 1Bangladesh enjoys duty-free, quota-free access to the EU under the GSP Everything But Arms (EBA) scheme — always mention this when quoting European buyers; it is a genuine competitive advantage vs non-LDC competitors
- 2EU import duty on knit garments (HS 61) from non-EBA countries is 12%; from Bangladesh it is 0% under EBA — this difference alone can be 5–8% of FOB value
- 3US import duty on Bangladesh garments ranges from 16–32% depending on HS code; Bangladesh does not currently have duty-free access to the US market (US GSP for apparel was withdrawn in 2013 and has not been restored as of 2026)
- 4Marine insurance: Institute Cargo Clauses A provides the broadest cover (all risks); ICC C is the minimum required under CIF Incoterms; most buyers specify ICC A — confirm with your buyer before booking
- 5LC (Letter of Credit) charges include issuing bank commission (0.1–0.3%), confirming bank fee (0.1–0.3%) and negotiation/discounting fees — total 0.5–1.0% of LC value; get your bank's fee schedule in advance
- 6Sea freight from Chittagong to major ports in 2025–26: Rotterdam $1,200–2,400, Los Angeles $2,200–4,000, Felixstowe $1,100–2,200 for a 40' container — verify current rates as they change monthly
Frequently Asked Questions
What is CIF price and when do buyers use it?+
CIF (Cost, Insurance and Freight) is an Incoterms 2020 rule (ICC publication 723E, p. 110) where the seller quotes a price that covers the production cost, ocean freight to destination port and minimum marine insurance. CIF is the price of goods at the destination port before import duty and local transport. Some Middle Eastern, African and South/Southeast Asian buyers purchase on CIF terms. Most US and EU buyers prefer FOB — which means they arrange and pay for freight separately. CIF = FOB + ocean freight + marine insurance.
Does Bangladesh pay zero duty on garment exports to the EU?+
Yes — Bangladesh qualifies for duty-free, quota-free access to the EU under the Everything But Arms (EBA) scheme, part of the EU's Generalised Scheme of Preferences (GSP) for Least Developed Countries (LDCs). EU GSP Regulation 978/2012 grants EBA status, and EU import duty on Bangladesh garments is 0% for both woven (HS 62) and knit (HS 61) categories. The UK's DCTS (Developing Countries Trading Scheme), which replaced EU GSP post-Brexit, also grants Bangladesh duty-free access. This zero-duty status is Bangladesh's single largest trade advantage.
What is marine cargo insurance and what level of cover is needed?+
Marine cargo insurance covers loss or damage to goods during sea transit. The Institute Cargo Clauses, published by the Lloyd's Market Association (LMA) and International Underwriting Association (IUA), define three cover levels: ICC A (all risks — broadest), ICC B (named perils including fire, collision, sea water) and ICC C (minimum, covers only catastrophic losses). Under Incoterms 2020 CIF, the seller must arrange minimum ICC C cover. However, most buyers' purchase orders specify ICC A with an agreed minimum value of 110% of CIF. Premium is typically 0.3–0.8% of insured value depending on route, carrier and commodity.
What is an LC and what bank charges apply?+
A Letter of Credit (Documentary Credit) is a payment instrument where the buyer's bank irrevocably commits to pay the seller when the seller presents conforming shipping documents. It is the safest payment method for export and is required by many Bangladesh factories for new buyer relationships. Bank charges include: (1) LC issuance fee — charged by the buyer's bank (0.1–0.3% of LC value); (2) Confirmation fee — charged by the seller's correspondent bank for adding its own payment guarantee (0.1–0.3%); (3) Negotiation/discounting fee — when the seller presents documents and receives payment (0.1–0.2%); and (4) SWIFT/telex and amendment fees. Total: 0.5–1.0% of shipment value. Reference: ICC Uniform Customs and Practice for Documentary Credits, UCP 600.
How do I compare FOB and CIF quotes from different suppliers?+
Convert all quotes to the same Incoterm before comparing — FOB is the cleanest basis since it excludes freight (which buyers can negotiate separately with their own forwarder). To convert a CIF quote to FOB: FOB = CIF − ocean freight per unit − insurance per unit. To convert FOB to CIF: CIF = FOB + freight/unit + insurance/unit. Comparing CIF to FOB without conversion can misrepresent which supplier is cheaper by $0.20–1.00 per piece depending on route.