# How to Calculate Garments Cost of Making (CM)

**How to Calculate Garments Cost of Making (CM):**

Calculating the cost of making (CM) for any garment items is an important factor in **garments merchandising**. Every garments merchandiser should know the actual calculating method of it. Otherwise, a factory may fall into a huge loss. As its importance in garments merchandising, today I will present an easy method for calculating the cost of making (CM) for any garment items.

**How to Calculate the Cost of Making (CM) of Garments?**

Before calculating the cost of making (CM) for any clothing items, a **garment merchandiser** should confirm the following matters:

- Factory total expenditure per month (running), it includes factory rent, electricity bill, water bill, commercial cost, transportation, worker & staff wages, etc.
- A total number of machines in the factory.
- A total number of machines required to complete an item.
- Targeted production per hour from the existing layout (excluding alter and reject).
- Total working day per month.
- Total working hours per day.

Now by applying the following formula, a garment merchandiser can easily calculate the actual cost of garments making.

**Cost of making (CM) per pcs,**

**Now one example is enough to remove all the confusion from the above discussion.**

**Example:**

Suppose,

H.N apparels have received an order of basic T-Shirt item.

Where,

H.N apparels total expenditure per month-30,00,000 taka

Total number of machines in the factory-100

Total number of machines required to complete an item-25

Targeted production per hour from the existing layout-180

Total working day per month-26

Total working hours per day-08

**Now calculate the costs of making(CM) of the mentioned item.**

**Solution:**

**Cost of making (CM) per pcs,**

= 20.03 taka per pcs

= (20.03 × 12) taka per dozen

= 240.38 taka per dozen

= 240.38/78 (in dollar) {1dollar-78taka (running)}

= $3.08 per dozen

So, the costs of making (CM) per dozen basic T-Shirt is $3.08

**Speech from the writer:**

This article is only for showing the calculating method only. All the numbers are used here just for completing the calculation.

#### Mayedul Islam

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Nice working

Thanks..

Very useful.

MANY THANKS FOR THIS VERY USEFUL ARTICLE. I DID A SHORT MERCHANDIZING COURSE IN BANGLADESH BUT DUE TO LACK OF OPPORTUNITY AND PRACTICE I FORGOT MANY THINGS. IT WOULD BE DEEPLY APPRECIATED IF YOU COULD KINDLY SUGGEST ME AS HOW CAN I GET ALL THESE GARMENTS RELATED INFORMATION(MERCHANDIZING) OR LESSON. PRESENTLY I AM IN ITALY AND WOULD LIKE TO START A GARMENTS BUSINESS . THANKS AND REGARDS.

Dear sir,

Bulding cost include in CM?

please information me.

Yes.

Thanks a lot these posting..

Good work!!!

sir,

I’m sample qc, bt I want to know more things, this site is awesome,, I like it very much,. now I have a question here, how to cost a garment (sus a l/s shirt)?

how to calculate a number of machine to be used in a garment for cm costing purposes?

Many Many Thanks Sir

Wc. Stay with us for more.

Dear SIR,

I understand CM calculating but my question is factory cost only included CM calculation why don’t

included other costs such Head Office cost ,finance cost . Other cost Ignore why?

very important post for all person garment industry. thanks.

Thanks.

Should the price of the thread for each garment be included in the cm price?