This guide walks through a practical garment costing example using the same logic as the Production Cost Calculator. The goal is to show how fabric, labor, trims, packaging, and overhead combine into one final production cost per garment.
The example uses USD and yards, which are common units for apparel costing scenarios targeting the United States market.
Scenario inputs for garment costing
Suppose you are costing a mid-weight cotton hoodie for a production order. The garment uses more fabric than a basic t-shirt and includes trims such as drawcord, labels, and thread.
- Fabric consumption: 2.20 yards per garment
- Fabric price: $5.75 per yard
- Waste allowance: 8%
- Labor rate: $18.00 per hour
- Standard minutes: 18 minutes per garment
- Trims cost: $1.25 per garment
- Packaging cost: $0.55 per garment
- Factory overhead: 15% of direct cost subtotal
Step 1: calculate fabric cost
Fabric cost is calculated from fabric consumption, fabric price, and waste allowance.
Step 2: calculate labor cost
Labor cost converts the hourly labor rate into a cost per garment using the standard minutes required to produce one unit.
Step 3: add trims and packaging
Trims and packaging are direct costs. They are added to fabric and labor before calculating overhead.
Step 4: calculate direct cost subtotal
The direct cost subtotal combines fabric, labor, trims, and packaging.
Step 5: add factory overhead
In this example, factory overhead is calculated as a percentage of the direct cost subtotal.
Final result: cost per garment
The final production cost per garment is the subtotal plus factory overhead.
In this example, the estimated garment production cost is $23.99 per garment.
Cost breakdown of the example
- Fabric cost: $13.66
- Labor cost: $5.40
- Trims cost: $1.25
- Packaging cost: $0.55
- Direct cost subtotal: $20.86
- Factory overhead: $3.13
- Total production cost: $23.99
Why this costing example matters
This example shows why garment costing should not stop at fabric cost. Labor, trims, packaging, and overhead can significantly change the final cost per unit.
Once production cost is calculated, it can be used to define selling price, estimate break-even volume, and analyze MOQ.
For a more detailed explanation of the formulas, see the garment production cost method.
Calculate your own garment cost
Use the Production Cost Calculator to calculate fabric, labor, trims, packaging, overhead, and total cost per garment.