How to Build a Garment Cost Sheet
Build a defensible landed cost from the BOM up: materials, cut-make-trim labour from SAM, value-added processes, overhead, and freight and duty — with the assumptions behind every number written down.
Reviewed apparel costing references and the fabric mass-per-area method for the structure of a landed cost sheet, the material and CM labour components, and the assumptions each rests on; no prices, labour rates, efficiencies, overhead percentages, margins, or MOQ effects are prescribed, and every figure is a commercial input requiring validation for the specific product, factory, and terms.
A garment cost sheet builds the landed unit cost from the bottom up: materials (the whole BOM), cut-make-trim labour, value-added processes (print, embroidery, wash), factory overhead, and freight and duty to your warehouse. Materials are usually the largest block at roughly 60 to 70 percent of a basic style, and the making cost is built from the garment's SAM (standard allowed minutes) times a minute cost, divided by line efficiency. A cost sheet is not a price: pricing and margin are separate decisions layered on top. Every number rests on an assumption — a fabric consumption, a labour rate, an efficiency, an overhead percentage, an order quantity — so a defensible cost sheet writes those assumptions down and treats the total as a validated estimate for a specific product, factory, quantity, and set of terms, not a universal figure.
Costing goes wrong in two ways: a missing input, or a hidden assumption. The first is solved by building from a complete bill of materials; the second by writing every rate, yield, efficiency, and quantity next to the number it produces. A total with no visible assumptions cannot be checked or negotiated.
The blocks of a landed cost
| Materials (from the BOM) | Every fabric, trim, thread, label, and packaging line, at its consumption times unit cost, including waste. Usually the largest block, around 60 to 70 percent for a basic style, and only as accurate as the BOM and the fabric consumption behind it. |
| Cut, make, trim (CM) labour | The making cost: the factory's charge to cut, sew, and finish. Built from the garment's work content, not guessed — see the SAM method below. |
| Value-added processes | Printing, embroidery, washing, dyeing, bonding, or special finishing, each priced per unit or per operation and often carrying their own minimums. |
| Overhead | The factory's rent, utilities, indirect labour, quality, and administration, usually recovered as a percentage on the making cost. The percentage varies by factory and is an input, not a constant. |
| Freight, duty, and terms | Inbound freight, insurance, duty, and clearing to your warehouse, which turn an ex-works cost into a landed cost. The Incoterms rule decides which of these sit in the supplier's price versus yours. |
Build the making cost from SAM, not a guess
| SAM (standard allowed minutes) | The measured work content of the garment: how many standard minutes the operations take. It is an industrial-engineering estimate for the specific style, not a fixed number by garment type. |
| Minute cost | The cost of one minute of line time at that factory, derived from wages, benefits, and the factory's cost base. It varies by factory and country and is a commercial input. |
| Line efficiency | Real lines do not run at 100 percent, so the making cost divides by efficiency: CM ≈ (SAM × minute cost) / efficiency. A lower efficiency raises the cost of the same garment. |
| Contractor margin | A CMT contractor adds a margin over its own cost. That margin is part of the price you pay and should be visible in the negotiation, not buried. |
The relationship is roughly CM per garment ≈ (SAM × minute cost) ÷ line efficiency, then overhead and margin are applied. Use the garment cost calculator to work a style through these blocks, and the fabric weight converter and fabric purchase planner for the material consumption that feeds the largest block.
A cost sheet is not a price
| It is a cost, not a price | The sheet gives your cost to land the garment. Retail price, wholesale price, and margin are separate decisions layered on top, driven by positioning and the market, not by the cost sheet alone. |
| Quantity changes everything | Minimums, price breaks, and amortised setup and sampling costs mean the per-unit cost depends on the order quantity. Cost a realistic quantity, and see [MOQ explained](/guides/moq-explained). |
| Scope and terms change the number | Whether the price is CMT, FOB, or full-package, and the exact Incoterms rule, decide which costs sit in the supplier's figure versus yours. Compare like with like via [production scope and delivery terms](/guides/cmt-vs-fob-vs-full-package). |
| There are no universal numbers | Fabric prices, labour rates, efficiencies, overheads, duties, and margins vary by material, factory, country, quantity, and season. A cost sheet is a validated estimate for a specific case, not a benchmark to copy. |
Garment cost sheet record
Garment cost sheet record
Build the landed cost from the BOM up, and write the assumption next to every number so the total can be checked and negotiated.
Saved in this browser only, never sent to a server.
Basis
Materials (from the BOM)
Conversion and processes
Landed and decision
Sources and decision boundaries
The cost-sheet structure, material and CM components, and the SAM-based making cost here follow apparel costing references such as the NetSuite guide to apparel costing and World Fashion Exchange on garment costing; the material block rests on a complete BOM and on fabric consumption from the measurable mass-per-area method (ASTM D3776). No prices, labour rates, efficiencies, overhead percentages, duties, or margins are prescribed: every figure is a commercial input that must be validated for the specific product, factory, quantity, and terms, and pricing and margin are separate decisions this guide does not make.
Work with a technical designer.
If a supplier quote and your own cost sheet disagree, do not argue about the total — line them up block by block. The gap is almost always one input: a different fabric consumption, efficiency, overhead, or a cost the other side has inside or outside the Incoterms boundary. Named side by side, it resolves quickly.
FAQ
What are the main parts of a garment cost sheet?
Materials from the full BOM, cut-make-trim labour, any value-added processes such as print or wash, factory overhead, and freight and duty to your warehouse. Materials are usually the largest block at roughly 60 to 70 percent of a basic style, and the sum is the landed cost per unit before pricing and margin.
How is the CM (making) cost calculated?
From the garment's work content, not a guess. The rough relationship is CM per garment ≈ (SAM × minute cost) ÷ line efficiency, where SAM is the measured standard allowed minutes for the style, minute cost is the factory's cost of a minute of line time, and efficiency accounts for lines not running at 100 percent. Overhead and contractor margin are then applied.
Is the cost sheet the same as the price?
No. The cost sheet gives your cost to land the garment; the retail or wholesale price and the margin are separate decisions layered on top, driven by market and positioning. Confusing the two is a common mistake that either erodes margin or prices a garment out of its market.
Why does the per-unit cost change with quantity and terms?
Minimums, price breaks, and amortised setup and sampling spread differently across different order sizes, so the per-unit cost depends on quantity. The production scope (CMT, FOB, full-package) and the exact Incoterms rule also decide which freight, duty, and handling sit in the supplier's price versus yours, changing the comparison.