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Garment Costing Calculator
Full garment cost sheet — fabric, trims, CM, overhead and profit.
CostNest Calculator
FOB Calculator — Free On Board Garment Price
Calculate the FOB price for garment export orders from material cost, CM, inland freight, agent commission and profit. Follows Incoterms 2020 (ICC) FOB definition. Used daily by Bangladesh RMG merchandisers quoting buyers. No account needed — numbers update as you type.
FOB price is calculated at the named port of origin — typically Chittagong Port or Dhaka ICD for Bangladesh exports. Under Incoterms 2020 (ICC publication 723E), seller risk ends when goods are on board the vessel. All costs beyond that point are the buyer's responsibility.
Step By Step
How to Use This Calculator
8 steps
- Enter fabric cost per garment — fabric price multiplied by gross consumption (including cutting wastage).
- Add trims and accessories per piece: labels, thread, buttons, zipper, polybag, master carton share.
- Enter CM (Cost of Making) — use the CM Calculator to derive it from SAM if you haven't already.
- Add packaging cost if not included in trims above.
- Enter inland freight per piece: get a confirmed rate from your C&F agent and divide by order quantity.
- Add export charges — Customs documentation (EXP form), port handling and loading fees.
- Enter your buying agent's commission rate and target profit margin.
- Ex-factory and FOB prices update live as you type.
Worked Example
Worked example — woven poplin shirt, FOB Chittagong
Use this sample to sanity-check your inputs and understand what the final result represents.
- 1Fabric: $2.80/pc · Trims: $0.65 · CM: $1.35 · Packaging: $0.18
- 2Inland freight: $500 ÷ 5,000 pcs = $0.10/pc
- 3Export charges (EXP + port + loading): $0.08/pc
- 4Agent commission: 5% · Profit margin: 12%
Final Result
Direct cost: $5.16 · Agent: $0.26 · Ex-factory: $5.42 · FOB at 12%: $6.16/pc.
Methodology
FOB Calculation — Incoterms 2020 structure
This section explains the calculation logic, assumptions, and source material used to make the result more trustworthy and easier to verify.
Material Cost = Fabric + Trims + Packaging. Direct Cost = Material + CM + Inland Freight + Export Charges. Agent Commission = Direct Cost × Agent Rate%. Ex-Factory Price = Direct Cost + Agent Commission. Profit Amount = Ex-Factory × Profit%. FOB Price = Ex-Factory + Profit. Under Incoterms 2020 (ICC), FOB is defined as Free On Board named port of shipment. Reference: ICC Incoterms® 2020 Rules, Rule FOB (p. 94); BGMEA Export Procedure Handbook 2023.
Practical Guidance
FOB quoting — what experienced merchandisers watch
- 1Always get a confirmed freight quote from your C&F agent before finalising FOB — rates fluctuate seasonally and can change within days during peak pre-holiday shipping windows
- 2Chittagong to Rotterdam sea freight on a 40' container was $1,200–$2,400 in early 2026; at 20,000 pcs per container that is $0.06–$0.12/pc — small but not negligible
- 3Export charges include the Bangladesh Customs EXP form, port congestion surcharge, and THC (Terminal Handling Charge) — your C&F agent will itemise these; typically $150–$300 per shipment
- 4Never reveal your CM breakdown to the buyer — disclose the total FOB only; revealing CM invites requests to cut it
- 5Agent commission of 3% is common for factories with a direct buyer relationship; 5–8% for buying-house-sourced orders
- 6For seasonal products, quote validity should be 15–30 days — commodity prices and freight rates shift enough to erode margin on a 90-day open quote
Frequently Asked Questions
What does FOB mean under Incoterms 2020?+
FOB (Free On Board) is one of eleven Incoterms® 2020 rules published by the International Chamber of Commerce (ICC, publication 723E). Under FOB, the seller delivers the goods on board the nominated vessel at the named port of shipment — after that moment, all risk and cost transfer to the buyer. For Bangladesh garment exports, the named port is typically 'FOB Chittagong' or 'FOB Dhaka ICD'. The seller's obligations include export clearance (EXP form), port charges and loading; the buyer covers ocean freight, insurance and import duty.
What is the difference between FOB and CIF?+
Under FOB, the buyer arranges and pays for ocean freight and marine insurance. Under CIF (Cost, Insurance and Freight), the seller arranges and includes ocean freight and minimum insurance (Institute Cargo Clauses C) in the price — risk still transfers at the port of origin, but the seller has paid freight to destination. CIF price = FOB price + ocean freight per unit + insurance premium. Most US and EU fashion buyers purchase on FOB; some Middle Eastern and Asian buyers prefer CIF. ICC Incoterms 2020, Rule CIF, page 110.
What are export charges in Bangladesh garment costing?+
Export charges are the costs between factory gate and vessel: (1) Inland haulage — truck from factory to Chittagong Port or Dhaka ICD; (2) EXP form processing — Bangladesh Customs export declaration, typically BDT 200–500 per shipment; (3) Port THC (Terminal Handling Charge) — Chittagong Port Authority levy on container handling; (4) Bill of Lading (B/L) fee — charged by the shipping line; (5) C&F agent service fee. Your C&F agent provides a proforma invoice covering all these; divide the total by order quantity for the per-piece figure.
How does buying agent commission work?+
A buying agent sources orders for foreign brands from factories, earns a commission on the FOB value, and serves as the communication bridge. Commission rates are typically 3–5% for established relationships and 5–8% for newer factory-buyer introductions. If you are dealing directly with a buyer (no agent), you may omit this cost and either retain it as extra margin or offer a better FOB price. In Bangladesh, major buying agents include Li & Fung, Amtex, Paramount and hundreds of smaller local houses registered with BGMEA.
How far in advance should I quote FOB to a buyer?+
Quote validity of 15–30 days is standard for Bangladesh RMG exports. Beyond that, raw material prices (especially yarn and greige fabric), freight rates and currency rates can shift enough to erode margin. If a buyer insists on a longer validity, either add a clause for price adjustment if raw material indices move more than 5%, or build in a larger margin buffer. The BGMEA recommends factories update their standard cost sheets every quarter.