FOB Costing Calculator — Garment Free On Board Price Breakdown
Building an accurate FOB (Free On Board) price breakdown ensures apparel exporters submit competitive buyer quotations while safeguarding factory profit margins.
What is FOB (Free On Board) Garment Costing?
Building an accurate FOB (Free On Board) price breakdown ensures apparel exporters submit competitive buyer quotations while safeguarding factory profit margins.
Formula
FOB Price = Direct Costs (Fabric + Trims + CM + Printing/Embroidery + Wash) × (1 + Commercial % / 100) × (1 + Profit Margin % / 100)
How to Calculate
Sum all direct manufacturing cost components, add commercial bank/L/C overhead percentage, and apply the factory profit margin percentage.
Example
Fabric = $2.50, Trims = $0.60, CM = $1.20, Print/Emb = $0.35, Wash = $0.25 (Direct = $4.90). Commercial 3% → $5.047. Profit 10% → FOB = $5.55 / pc.
Frequently Asked Questions
FOB covers all costs required to manufacture and load goods onto the vessel at the port of origin (e.g., Chittagong, Shanghai).