At first glance, garment costing for a basic knitted T‑shirt looks simple. Just a standard product, right?
But in reality… it’s anything but simple.
T‑shirts run on huge volumes, very tight buyer margins, and heavy dependence on fabric price and line efficiency. Even a small mistake — few cents here or there — can quietly eat into profit.
That’s why costing for T‑shirts tends to be more sensitive than most other garments.
Overall Cost Structure
The FOB cost of a basic knitted T‑shirt is mainly influenced by:
- Body fabric consumption
- CM (Cut–Make) cost driven by SMV and efficiency
- Optional print or wash process
- Trims, testing and commercial expenses
Product Overview
Style: Men’s Basic Crew Neck T‑Shirt
Fit: Regular Fit
Fabric Type: 100% Cotton Single Jersey
Fabric GSM: 160
Order Quantity: 50,000 pcs
Shipment Term: FOB
Destination Market: EU / USA
Standard Garment Measurement (Base Size)
The following Men’s T‑Shirt – Size L measurements are taken as the base size for fabric consumption, marker development and costing.
Measurement Sheet (Size L)
| Measurement Point | Measurement |
|---|---|
| Chest (½) | 54 cm |
| Body Length (HPS to Hem) | 72 cm |
| Shoulder Width | 46 cm |
| Sleeve Length | 22 cm |
| Armhole (Straight) | 24 cm |
| Bottom Hem Width (½) | 54 cm |
| Neck Width | 18 cm |
| Neck Depth (Front) | 10 cm |
Note: Base size (L) is standard industry practice for knit consumption and marker planning.
Fabric Details
Body Fabric
- Fabric type: 100% Cotton Single Jersey
- GSM: 160
- Fabric width: 72 inch (Tubular / Open width)
Rib Fabric (Neck Rib)
- Fabric type: Cotton Rib
- GSM: 220
- Usage: Neck rib only
Fabric Consumption Calculation
(Based on marker planning & industry practice)
Fabric consumption is calculated per piece.
Body Fabric Consumption
Based on:
- T‑shirt measurements
- Medium‑to‑large size ratio
- Marker efficiency ≈ 83–86%
Body Fabric Consumption
= 0.180 kg / piece
Rib Fabric Consumption (Neck)
Includes:
- Rib neckline allowance
Rib Fabric Consumption
= 0.015 kg / piece
Total Fabric Consumption (Before Loss)
| Fabric Component | Consumption |
|---|---|
| Body Fabric | 0.180 kg |
| Neck Rib | 0.015 kg |
| Total (Pre‑Loss) | 0.195 kg |
Fabric Allowance (Shrinkage & Process Loss)
Cotton jersey fabric requires allowance for:
- Relaxation shrinkage
- Cutting & spreading loss
- Fabric handling loss
Standard allowance applied: 6%
Final Fabric Consumption
0.195 × 1.06 = 0.207 kg / piece
Approved Fabric Consumption = 0.207 kg / piece
Fabric Price & Cost
Single Jersey fabric price: USD 4.20 / kg
(Bulk booking, export quality, combed cotton)
Fabric Cost per Piece
0.207 × 4.20 = USD 0.87
Fabric Cost = USD 0.87 / piece
Trims & Accessories Cost
Typical T‑Shirt Trims
| Trim Item | Cost (USD) |
|---|---|
| Sewing thread | 0.04 |
| Neck rib | Included in fabric |
| Main label | 0.05 |
| Care & size label | 0.05 |
| Hangtag | 0.07 |
| Polybag | 0.06 |
CM (Cut‑Make) Cost – SMV Based
SMV Breakdown (Basic T‑Shirt)
| Operation | SMV (minutes) |
|---|---|
| Cutting | 0.8 |
| Body joining | 2.4 |
| Neck rib attach | 1.6 |
| Sleeve attach | 2.0 |
| Bottom & sleeve hem | 1.4 |
| Finishing & packing | 1.3 |
Total SMV = 9.5 minutes
CM Calculation
- Cost per minute (CPM): USD 0.006
- Line efficiency: 65%
CM = (9.5 × 0.006) ÷ 0.65
CM = USD 0.088
Factories add overhead & profit:
Final Charged CM = USD 0.55 / piece
Printing / Embroidery Cost (Optional)
Front Chest Print (Optional)
- Screen print (2 colors)
Print Cost = USD 0.30
(If garment is plain, this cost is zero.)
Washing / Finishing Cost
Typical T‑shirt processing:
- Enzyme wash
- Silicon softener
| Process | Cost (USD) |
|---|---|
| Enzyme wash | 0.20 |
| Softener | 0.10 |
Total Washing Cost = USD 0.30
Testing & Compliance Cost
Buyer‑required tests:
- Fabric composition
- Color fastness
- Dimensional stability
Total testing cost: USD 600
Order quantity: 50,000 pcs
Testing cost per pc = 600 ÷ 50,000 = USD 0.012
Testing Cost = USD 0.01
Commercial & Export Cost
Includes:
- LC opening & negotiation
- Bank charges
- Courier & export documentation
Assumed at 1.2% of FOB
Commercial Cost = USD 0.05
Total FOB Cost Summary (Knitted T‑Shirt)
| Cost Component | USD |
|---|---|
| Fabric | 0.87 |
| Trims | 0.27 |
| CM | 0.55 |
| Printing | 0.30 |
| Washing | 0.30 |
| Testing | 0.01 |
| Commercial | 0.05 |
Total FOB Cost = USD 2.35
Profit Margin & Buyer Offer Price
Profit Strategy
- Basic T‑shirts allow 5–8% margin
- Assumed margin: 7%
Profit = 2.35 × 7% = USD 0.16
Final Buyer FOB Offer
= USD 2.35 + 0.16 = USD 2.51
Quoted FOB Price Range: USD 2.50 – 2.55
Cost Sensitivity Points (Real Factory Insight)
Key sensitivities:
- Fabric price ± USD 0.10/kg → ± USD 0.02 per piece
- Efficiency drop by 5% → CM ↑ by 8–10%
- Extra wash / special finish → + USD 0.20–0.40 per piece
- Air shipment risk → + USD 0.50–0.80 per piece
This is why basic T‑shirt costing must be tightly controlled despite being a simple product.
Final Note
Although a T‑shirt appears simple, high order volumes, tight buyer margins and fabric price sensitivity make accurate costing critical. Correct fabric consumption, SMV‑based CM and efficiency assumptions are the keys to profitability.
