Garment FOB Price and CMT Margin Calculator
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.
Your numbers
Net marker consumption per garment, before wastage.
Landed price per meter at your cutting room.
Thread, zipper, buttons, labels, hangtags.
Your conversion cost per piece including overhead.
Interest during the production and payment cycle.
Your results
Indicative costing. Excludes buyer commissions, duty drawback, incentives, and exchange rate effects, which you should add for your market.
FOB price vs target margin
Sweeps Target margin on price from 0 to 30, holding your other inputs fixed.
Style costing from live ERP data
Optional: discuss pulling fabric, BOM and labor rates from your ERP into a costing view.
Optional. The tool and every export work without this. No spam.
How to use it
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.
- 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
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
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
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.
Frequently Asked Questions
What does FOB mean in a garment quote?
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?
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?
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?
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.
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.
Related Tools
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Industry TemplatesFabric Shrinkage Pattern Allowance Calculator
Convert finished garment size and wash shrinkage into the pattern (cut) size, then total fabric area and linear meters for the order.
Industry TemplatesCutting Order and Lay Plan Sheet Template
A fill-in cutting order and lay plan for the cutting room: style, fabric, marker, ply count, size ratio and approvals, exported to PDF or Word.
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