Accurate costing is one of the most important parts of clothing manufacturing. For B2B buyers and apparel brands, even a small mistake in cost calculation can lead to pricing issues, reduced profit margins, or production delays. This is where a garment costing sheet plays a critical role.
A costing sheet for a garment assists the manufacturers in determining the actual cost of manufacturing a garment, including raw materials, to the final delivery cost. It guarantees transparency, uniformity, and precision in price quotation to the buyers. Here in this blog, we shall dissect each section of the garment costing sheet in a simple and easy-to-understand manner so that you know precisely how clothing manufacturing costs are calculated.
What Is a Garment Costing Sheet?
A costing sheet is an elaborate document employed by clothing manufacturers to determine the overall cost of making a garment. It encompasses all expense components like fabric, trims, labor, overheads, packaging, logistics, and profit margin.
To put it simply, it provides an answer to one question:
“How much does it really cost to manufacture one garment?”
A garment costing sheet is a breakdown of all expenses, unlike other general cost estimates. This simplifies the task of manufacturers to provide the correct pricing, and also buyers know where their money is as well.
Why Accurate Garment Costing Matters for Clothing Manufacturers?
In a B2B, the correct costing of garments is crucial to both the producers and the purchasers. First, it assists manufacturers in charging competitive and profitable prices. In case of underestimation of costs, the manufacturer might incur losses. In case the costs are exaggerated, the buyer can reject the quote.
Second, a properly prepared cost sheet in the garment industry enhances trust and transparency. Buyers are glad of transparent cost breakdowns as this enables them to make budget plans and to make comparisons between suppliers.
Lastly, proper costing aids in improved planning of production, easier negotiations, and extended business relations.
Key Components of a Garment Costing Sheet
A garment cost sheet format is separated into some important parts. Every part will add to the overall cost of the garment.
Header & Style Information
This is the top section of the garment costing sheet and includes basic details such as:
- Style name or number
- Buyer or brand name
- Garment type (t-shirt, hoodie, jacket, etc.)
- Size range and fit
- Order quantity
- Season or collection
The information assists in recognizing the garment and preventing confusion, particularly when dealing with several styles at once.
Material Costs
Material cost usually makes up the largest portion of garment manufacturing costs.
Fabric Cost
This includes:
- Fabric type and quality
- Fabric price per meter or per kg
- Fabric consumption per garment
- Fabric wastage allowance
Computation of correct fabric consumption is very critical. The slightest mistake can make the costs grow exponentially with scale.
Trims & Accessories
This includes all additional items used in the garment, such as:
- Buttons
- Zippers
- Labels
- Threads
- Drawstrings
- Elastic
The trim is determined per piece and is entered on the cost sheet for a garment factory.
Dyeing, Printing & Washing
If the garment requires special processes like:
- Dyeing
- Screen printing
- Embroidery
- Washing or finishing treatments
The costs are incurred independently, as they may change depending on the complexity of the design.
Labor & Manufacturing Costs (CM / CMT)
Labor cost, often referred to as Cost of Making (CM) or Cut, Make, and Trim (CMT), covers all production operations, including:
- Cutting
- Sewing
- Finishing
- Quality checks
- Labor cost depends on:
- Garment complexity
- Number of operations
- Production time per piece
Manufacturers benefit from precise CM calculation as it helps them keep their production lucrative while meeting quality criteria, especially when supported by standardized processes, such as how to do clothing measurements accurately to reduce errors and rework.
Overhead & Factory Costs
Overhead costs are indirect expenses required to run the factory. These include:
- Factory rent
- Electricity and water
- Machinery maintenance
- Supervisor and support staff salaries
- Depreciation of equipment
Usually, depending on the production quantity, these costs are divided per piece of clothing. Not considering overheads could lead to financial losses and underpriced quotes.
Commercial & Administrative Expenses
This section includes business-related expenses that are not directly linked to production, such as:
- Office salaries
- Accounting and compliance costs
- Sales and merchandising expenses
- Communication and software costs
Though each of these costs seems small, they are vital for the exact total costing in B2B production.
Logistics, Packaging & Post-Production Costs
After production, garments still need to be packed and delivered. This section includes:
- Packaging materials (poly bags, cartons, hangtags)
- Carton packing costs
- Transportation to the port or warehouse
- Export documentation
- Duties and handling charges (if applicable)
These expenses guide the ultimate FOB (Free on Board) or delivered price.
Profit Margin & Final Pricing
Profit margin is the final and most important part of the cost sheet of a garment manufacturing company. Manufacturers usually add a percentage margin to cover:
- Business growth
- Risk management
- Future investments
After adding the profit margin to the overall production cost, the ultimate garment price is computed. A balanced margin guarantees long-term sustainability and competitive prices.
Step-by-Step Example: How to Build a Garment Costing Sheet
Understanding how a basic cost sheet in the garment and apparel industry functions calls for a basic illustration.
Imagine we are estimating the cost of producing a basic cotton T-shirt for a sizable B2B order to understand how much it costs to manufacture clothes, and the step-by-step method shown here explains how every cost category contributes toward the final garment price.
Step 1: Calculate Material Costs
Material cost includes fabric and trims used to make one garment.
| Material Component | Cost per Garment (USD) |
| Main fabric (cotton) | 3.00 |
| Thread | 0.10 |
| Neck label | 0.15 |
| Care label | 0.05 |
| Total Material Cost | 3.30 |
Step 2: Add Printing or Finishing Costs (If Applicable)
If the garment includes printing, embroidery, or washing, these costs are added separately.
| Finishing Process | Cost per Garment (USD) |
| Screen printing | 0.70 |
| Total Finishing Cost | 0.70 |
Step 3: Add Labor & Manufacturing Cost (CM / CMT)
This cost covers cutting, sewing, finishing, and quality checking.
| Manufacturing Activity | Cost per Garment (USD) |
| Cutting & sewing | 1.20 |
| Finishing & inspection | 0.30 |
| Total Labor Cost (CM) | 1.50 |
Step 4: Allocate Overhead & Factory Costs
Overhead costs are indirect expenses required to run the factory.
| Overhead Item | Cost per Garment (USD) |
| Factory rent & utilities | 0.35 |
| Machinery maintenance | 0.15 |
| Supervisor & support staff | 0.20 |
| Total Overhead Cost | 0.70 |
Step 5: Add Administrative & Commercial Expenses
These costs support business operations and order management.
| Admin Expense | Cost per Garment (USD) |
| Office & admin costs | 0.20 |
| Merchandising & coordination | 0.15 |
| Total Admin Cost | 0.35 |
Step 6: Include Packaging & Logistics Costs
This step covers costs after production is completed.
| Packaging & Logistics | Cost per Garment (USD) |
| Polybag & carton packing | 0.25 |
| Transportation & handling | 0.30 |
| Total Logistics Cost | 0.55 |
Step 7: Calculate Total Production Cost
Now, add all costs together to get the total cost before profit.
| Cost Category | Cost per Garment (USD) |
| Material cost | 3.30 |
| Printing/finishing | 0.70 |
| Labor (CM) | 1.50 |
| Overhead cost | 0.70 |
| Admin cost | 0.35 |
| Packaging & logistics | 0.55 |
| Total Production Cost | 7.10 |
Step 8: Add Profit Margin to Get Final Price
Manufacturers add a profit margin to ensure business sustainability. Let’s assume a 15% profit margin.
| Pricing Calculation | Amount (USD) |
| Total production cost | 7.10 |
| 15% profit margin | 1.07 |
| Final Garment Price | 8.17 |
Final Costing Summary
This basic illustration helps one understand how a clothing price sheet constructs the ultimate cost step by step. Every expense component, including materials, labor, overheads, and logistics, adds to the overall clothing cost. Employing a well-defined garment cost sheet enables B2B apparel producers:
- Quote accurate prices
- Control production costs
- Maintain healthy profit margins
- Build trust with buyers
Tips for Better Garment Costing Sheet Management
To improve costing accuracy, manufacturers should:
- Use standardized garment costing sheet templates
- Update fabric and trim prices regularly
- Review cost sheets before buyer submission
- Keep records of past cost sheets for comparison
- Train merchandising and production teams on costing basics
Well-run costing sheets result in more effective decision-making and smoother manufacturing processes.
How Much Does Clothing Manufacturing Cost?
Factors including fabric type, design complexity, labor, order volume, and manufacturing site determine the cost of clothing. A basic garment like a T-shirt could average $6–$10 per piece to make; more complicated products like hoodies, jackets, or dresses can range from $12–$30 or more per piece. Normally, bulk purchases have lower costs; these rise with premium materials, exquisite finishing, and small production runs.
Key Takeaways from Garment Costing Sheet Breakdown
The cornerstone of correct apparel production costs is a well-designed cost sheet of the garment company. It aids producers in pricing apparel appropriately, preserving profitability, and developing rapport with B2B customers.
Garment costing sheets help to provide visibility and control throughout the production process by expressly dividing material expenses, labor, overheads, logistics, and profit margins. For clothing companies wanting to grow, increase productivity, and build long-lasting connections, learning garment pricing and contacting Tack Apparel is the best.
