# Garment FOB Price and CMT Margin Calculator

> Source: https://netray.co/tools/garment-fob-price-cmt-margin-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Build a garment FOB quote from fabric consumption, trims, CMT, packing, finance cost and the margin you want to earn.

## Category

cost-finance

## Industry

Textile & Apparel

## Audience

- Merchandiser
- Costing manager
- Plant manager
- Export manager

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### Fabric consumption

**Key:** cons

**Type:** number

**Default:** 1.45

**Min:** 0

**Step:** 0.01

**Unit:** m/pc

**Help:** Net marker consumption per garment, before wastage.

#### Fabric price

**Key:** fabric_price

**Type:** number

**Default:** 4.2

**Min:** 0

**Step:** 0.05

**Unit:** $/m

**Help:** Landed price per meter at your cutting room.

#### Fabric wastage

**Key:** waste

**Type:** number

**Default:** 5

**Min:** 0

**Max:** 30

**Step:** 0.5

**Unit:** %

#### Trims and labels

**Key:** trims

**Type:** number

**Default:** 0.45

**Min:** 0

**Step:** 0.01

**Unit:** $/pc

**Help:** Thread, zipper, buttons, labels, hangtags.

#### CMT (cut, make, trim)

**Key:** cmt

**Type:** number

**Default:** 1.1

**Min:** 0

**Step:** 0.01

**Unit:** $/pc

**Help:** Your conversion cost per piece including overhead.

#### Packing and carton

**Key:** packing

**Type:** number

**Default:** 0.18

**Min:** 0

**Step:** 0.01

**Unit:** $/pc

#### Testing, inland freight, other

**Key:** other

**Type:** number

**Default:** 0.12

**Min:** 0

**Step:** 0.01

**Unit:** $/pc

#### Finance cost on cost base

**Key:** finance

**Type:** number

**Default:** 2

**Min:** 0

**Max:** 20

**Step:** 0.1

**Unit:** %

**Help:** Interest during the production and payment cycle.

#### Target margin on price

**Key:** margin

**Type:** slider

**Default:** 10

**Min:** 0

**Max:** 40

**Step:** 1

**Unit:** %

**Outputs:**

#### Fabric cost per piece

**Key:** fabric_cost

**Expr:** cons * (1 + waste / 100) * fabric_price

**Format:** currency

**Description:** Consumption with wastage x price.

#### Direct cost per piece

**Key:** direct

**Expr:** fabric_cost + trims + cmt + packing + other

**Format:** currency

#### Finance cost

**Key:** fin_cost

**Expr:** direct * finance / 100

**Format:** currency

#### Total cost per piece

**Key:** total_cost

**Expr:** direct + fin_cost

**Format:** currency

**Primary:** true

#### FOB price per piece

**Key:** price

**Expr:** total_cost / (1 - margin / 100)

**Format:** currency

**Primary:** true

**Description:** Margin is taken on price, so profit is a share of the selling price.

#### Profit per piece

**Key:** profit

**Expr:** price - total_cost

**Format:** currency

#### Markup on cost

**Key:** markup

**Expr:** (price / total_cost - 1) * 100

**Format:** percent

**Description:** Markup is higher than margin for the same price.

**Chart:**

#### FOB price vs target margin

**Type:** line

**X:** margin

**From:** 0

**To:** 30

**Steps:** 31

**Series:**

- price

**Disclaimer:** Indicative costing. Excludes buyer commissions, duty drawback, incentives, and exchange rate effects, which you should add for your market.

## Content

**Intro:** A garment quote is a sum of fabric, trims, conversion and packing, plus finance and a margin. This calculator builds the FOB price from those parts and shows profit per piece and the markup, so you can see where a buyer negotiation will hurt.

**Sections:**

#### How to use it

**Body:** Start with fabric consumption from the marker and the landed fabric price. Add wastage, trims, CMT, packing and other costs, all per piece. Set finance cost on the cost base and slide the target margin. Read the primary outputs for total cost and FOB price, and compare the profit per piece with the buyer target price.

**Bullets:**

- Use landed fabric price, including freight and duty if any
- CMT should include factory overhead, not just direct sewing labor
- Enter margin on selling price, the way most buyers read it

#### The formulas

**Body:** Fabric cost = consumption x (1 + wastage) x price. Direct cost = fabric + trims + CMT + packing + other. Finance = direct cost x finance rate. Price = total cost / (1 - margin). A 10 percent margin on price needs a markup of 11.1 percent on cost, which is why dividing is correct and multiplying cost by 1.10 would leave you short of target margin.

#### Reading the result

**Body:** Fabric is typically the largest line in woven and knit apparel, so a small change in consumption moves the price more than a CMT change. Try one more wastage point or a lower consumption figure to see what a marker improvement is worth. The margin sweep shows how much price you give up for each point of margin during a negotiation.

#### Common mistakes

**Body:** Quotes often miss trims that buyers add late, packing changes, sampling cost and the interest on fabric stock. Another error is reusing consumption from a different size set; consumption is usually quoted for the base size. Re-cost whenever fabric price, exchange rate or wage cost changes, and keep the sheet linked to the style in your ERP.

**Cta:** If styles, BOMs and standard costs are in your ERP, we can build a read-only assistant that rolls up current costs for a style and flags quotes that have drifted below margin.

**Faq:**

#### What does FOB mean in a garment quote?

**Answer:** Free on board means the seller pays to deliver goods to the vessel at the named port, and the buyer pays freight and insurance from there. FOB price therefore covers production, packing and export clearance, not ocean freight.

#### What is CMT in garment costing?

**Answer:** CMT stands for cut, make and trim. It is the conversion charge for cutting the fabric, sewing, finishing and basic trimming, often quoted per piece, and may or may not include thread and packing depending on the contract.

#### Margin or markup, which should I use?

**Answer:** Margin is profit as a share of price, markup is profit as a share of cost. Buyers and finance teams usually discuss margin. This tool uses margin on price and shows the equivalent markup so both teams can compare.

#### Does it include duty drawback or export incentives?

**Answer:** No. Incentives vary by country and scheme, and change often. Treat them as an adjustment to net cost or margin after you have the base FOB price, and verify the current rules with your adviser.

## Search terms

garment costing calculator, FOB price calculator garment, CMT cost calculator, garment costing sheet, apparel margin calculator, how to calculate FOB price for garments, fabric cost per garment calculator, cost per piece garment export

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