Garment Costing Hub

A garment cost sheet is a structured breakdown of every cost required to manufacture one unit of a garment before delivery to the buyer. A complete cost sheet includes: (1) Fabric cost — consumption in metres × price per metre, (2) Trims and accessories — zippers, buttons, labels, poly bags, hangtags, (3) CM (Cost of Making) — labour, overhead recovery, factory profit, (4) Inland freight — haulage from factory to port, (5) Buying agent commission — typically 3–8% of FOB, and (6) Profit margin — the factory's target net return. Merchandisers use it to quote buyers; production teams use it to set CM budgets.

CM (Cost of Making) is the per-unit manufacturing charge a factory applies for cutting, sewing, finishing and packing one garment — excluding raw material cost. CM is calculated from the SAM (Standard Allowed Minutes) of the style: CM = (SAM ÷ 60) × operator minute rate × overhead factor. For example, a shirt with a 25 SAM, an operator rate of BDT 2.50/min, and a 1.4 overhead factor gives a CM of BDT 87.50. Buyers negotiate CM separately from fabric and trim costs.

FOB (Free On Board) price = CM + Fabric cost + Trims & accessories + Inland freight to port + Buying agent commission + Factory profit margin. The FOB price represents the total cost of the garment loaded onto the export vessel at Chittagong or Mongla port — all risks and costs beyond the ship's rail transfer to the buyer. Bangladesh RMG exports are almost universally quoted on FOB terms. Our FOB Calculator lets you build this up layer by layer.

Most Bangladesh RMG factories aim for a net profit margin of 8–15% on FOB value. Knitwear factories producing basic T-shirts and polo shirts on high-volume orders often achieve 10–18% due to lower material complexity. Woven garment factories — dealing with more complex patterns, higher fabric waste, and slower SAM — typically work on 6–12%. Compliance costs, test fees, and buyer-mandated social audits increasingly compress margins, making accurate cost control through tools like cost sheets essential.

EXW (Ex Works / ex-factory) price is the cost of goods at the factory gate — the buyer arranges and pays for all transportation from that point, including inland haulage, export customs clearance and ocean freight. FOB price adds inland haulage to the port and the export clearance costs on top of the ex-factory price. FOB is the dominant export pricing term for Bangladesh garment exports. Understanding the difference matters when a buyer asks for an 'ex-factory' quote versus a standard FOB quote.

Fabric typically accounts for 60–70% of total garment cost in woven products and 50–65% in knitwear. Even a 3% overestimate or underestimate in fabric consumption translates directly to a 1.8–4.5% error in total unit cost — easily erasing profit on a large order. Consumption accuracy depends on correct pattern area measurement, realistic fabric wastage allowances (usually 5–15% depending on lay plan efficiency), and proper shrinkage adjustment. Our Fabric Consumption Calculator and Garment Costing Calculator address this in detail.

Duty drawback is a refund of customs duties paid on imported raw materials (fabric, yarn, accessories) that were used in the production of goods subsequently exported. Bangladesh NBR (National Board of Revenue) offers both flat-rate drawback (a fixed amount per kg or USD value exported) and actual drawback (based on actual duty paid, verified with import documents). Exporters submit duty drawback claims through the relevant Customs House after shipment. Our Duty Drawback Calculator estimates both methods so you can compare and plan.

SMV (Standard Minute Value) and SAM (Standard Allowed Minutes) are often used interchangeably in Bangladesh RMG, but technically differ slightly. SMV is the basic time for an operation at standard pace (observed time × rating factor), excluding allowances. SAM adds personal, fatigue and delay (PF&D) allowances on top: SAM = SMV × (1 + allowance%). For a typical Bangladesh factory, allowances range from 15–20%. Our SMV Calculator computes SMV from observed times and ratings, while the SAM Calculator applies allowances to produce the final production planning figure.