August 10, 2026 · Texera Team
How to Calculate the Cost of a Garment: The Full Formula
The cost of a garment is the sum of five components: fabric, cut-and-sew labor, trims, decoration, and packaging. Each one is calculated differently, and each responds differently to changes in quantity, fabric, and design complexity. Here's how to calculate each piece, and where most people get the math wrong.
1. Fabric cost = consumption × price per kg
Fabric cost isn't the fabric's price alone — it's price per kilogram multiplied by how much fabric one garment actually consumes, which depends on the pattern and your size run. A heavier GSM increases both the price per kg and the weight consumed per garment, which is why fabric weight moves cost more than people expect.
2. Cut-and-sew labor (CMT) is priced per operation, not per garment
CMT — cut, make, trim — pricing reflects the number of sewing operations a garment requires. A basic tee has far fewer operations than a hoodie with a zipper, hood, and kangaroo pocket, which is why garment complexity (not just size) drives labor cost.
3. Trims and labels are small individually, real in aggregate
Woven labels, hang tags, drawcords, zippers, and similar trims are cheap per unit but add up across a full order — and they're easy to forget when eyeballing a cost estimate instead of calculating one.
4. Decoration usually has a setup fee plus a per-unit cost
Screen printing and embroidery typically charge a one-time setup fee (per color, per design) on top of a per-unit application cost. This means decoration cost per unit drops as order quantity increases, since the setup fee amortizes across more units — a 100-pc order absorbs a $50 setup fee very differently than a 1,000-pc order does.
5. Packaging is a per-unit line item that scales with your branding ambitions
A plain poly bag costs a fraction of custom branded packaging. This is usually the easiest line item to adjust if you need to hit a target price point.
Worked example: costing 100 basic cotton tees
For a 100-pc order of a basic cotton tee (mid-weight, ~200 GSM) with a single-color screen print and basic poly bag packaging, the five components roughly break down as: fabric cost per unit, CMT labor per unit, a few cents in trims, a per-unit decoration cost plus an amortized setup fee, and packaging. Stack those five numbers and you have your per-unit cost — multiply by 100 for your order total, before markup to retail.
The exact numbers depend on your specific fabric, print colors, and packaging choice — which is exactly what our garment cost calculator computes live, using this same five-component formula.
Frequently asked
Does order quantity affect the price per piece? Yes — mainly because setup costs (cutting, print screens, sample development) are fixed and get spread across more units as quantity grows, not because per-unit labor or fabric cost drops dramatically.
What's the difference between FOB and landed cost? FOB (free on board) is the factory's price before shipping and duties. Landed cost adds freight, duties, and any import fees — the number that actually determines your margin once product is in your hands.
Why don't manufacturers publish flat pricing? Because fabric, decoration, and packaging choices change the cost breakdown enough that a single published number would be misleading for most orders — which is the same reason we built a calculator instead of a price list.
Run your own numbers with the cost calculator, or request a formal quote once you know what you're building.