Complete Guide to Knitting Garment Costing (With Technical Details)

Introduction

Knitting garment costing is one of the most critical processes in the apparel industry. Accurate costing ensures profitability, competitive pricing, and smooth production planning. Whether you are producing T-shirts, hoodies, joggers, or activewear, understanding each cost element is essential. In my 27 years of experience, there hasn’t been a single garment order that didn’t teach me something new. Every order brings a valuable lesson. In the textile industry, even routine products often provide important insights that can be applied to improve and manage future orders more effectively. The textile industry is a vast field of continuous learning, offering new insights and experiences at every stage.

---

🧮 1. Basic Costing Formula

Garment Cost = Fabric Cost + Trims Cost + CMT (Cut, Make, Trim) + Washing/Finishing + Packing + Overheads + Profit Margin

---

🧵 2. Fabric Cost Calculation (Most Important – 60–70%)

📌 Step 1: Calculate Fabric Consumption

Formula:

Consumption (kg) = (Garment Weight × Quantity) / 1000

Important things you should in hand for costing:

1- First you should know the achievable width & GSM with +/- margins of required fabric to calculate the consumption.

2- Garment complete techpack, required measurement sheet, with packing details.

Fabric Consumption per piece (kg) = GSM × Area (m²)

Where:

• GSM = grams per square meter
• Area = marker length × width

📌 Example:

• GSM = 180
• Marker consumption = 1.6 meters
• Fabric width = 1.8 meters

Fabric consumption = 180 × 1.6 × 1.8 / 1000 = 0.518 kg per piece

---

📌 Step 2: Fabric Cost

Fabric Cost per piece = Consumption × Fabric Price per kg

Example:

• Consumption = 0.52 kg
• Fabric price = $3/kg

👉 Fabric Cost = 0.52 × 3 = $1.56

---

✂️ 3. Trims Cost

Includes:

• Sewing thread
• Labels (main, size, care)
• Tags & barcodes
• Elastic / drawcord
• Zippers / buttons

Example:

Item Cost Thread $0.05 Labels $0.10 Tags $0.08 Elastic $0.20

👉 Total Trims = $0.43

---

🏭 4. CMT Cost (Cut, Make, Trim)

This includes:

• Cutting
• Stitching
• Labor cost
• Machine cost

📌 Calculation Method:

CMT = SMV × Cost per minute

Where:

• SMV = Standard Minute Value
• Cost/minute depends on factory efficiency also depends upon the production manager efficiency.

Example:

• SMV = 12 minutes
• Cost/min = $0.08

👉 CMT = 12 × 0.08 = $0.96

---

🧼 5. Washing & Finishing Cost

Depends on garment type:

• Basic wash: $0.30–$0.50
• Enzyme wash: $0.50–$0.80
• Garment dye: $1.00+

👉 Example: $0.60

---

📦 6. Packing Cost

Includes:

• Polybags
• Cartons
• Stickers
• Tissue paper

👉 Example: $0.25

---

🏢 7. Overhead Cost

Includes:

• Electricity
• Rent
• Administration
• Rejections / wastage normally 1 – 3%

Usually calculated as % of CMT or total cost.

👉 Example: $0.50

---

💰 8. Profit Margin

Typical margin:

• 10% to 25% depending on buyer & market

👉 Example: $1.00

---

📊 9. Final Costing Example

Component Cost Fabric $1.56 Trims $0.43 CMT $0.96 Washing $0.60 Packing $0.25 Overhead $0.50 Profit $1.00

✅ Final FOB Price:

👉 $5.30 per piece

---

⚙️ 10. Technical Factors Affecting Costing

🔹 GSM Variation

Higher GSM = higher fabric cost

🔹 Fabric Type

• Cotton = cheaper
• Polyester blends = moderate
• Performance fabrics = expensive

🔹 Fabric Width

Better width = better consumption efficiency depends upon garment measurement.

🔹 Marker Efficiency

Good marker planning reduces wastage (3–10%)

🔹 SM Optimization

Lower SMV = lower labor cost

---

📉 11. How to Maintain Costing Efficiently

✅ 1. Control Fabric Wastage

• Use optimized marker planning if no marker then
• Monitor cutting losses.

✅ 2. Bulk Booking

• Book fabric in advance to lock prices

✅ 3. Vendor Negotiation

• Build long-term supplier relationships

✅ 4. Improve Line Efficiency

• Train operators
• Balance production line

✅ 5. Monitor SMV

• Conduct time studies regularly

✅ 6. Reduce Rejections

• Maintain strict QA process

✅ 7. Cost Tracking System

• Maintain Excel or ERP sheet for each style

---

📌 12. Pro Tips (Industry Level)

• Always add 3–5% fabric buffer
• Keep separate costing for sampling & bulk
• Maintain historical costing database
• Compare actual vs estimated cost after production most important work to do for future reference.

Get in touch for details at sales@umapparels.com