Cost of Making of a Garment – Calculate CM

Cost of Making of a Garment:
Garment CM (Cost of Making) is a term used in the fashion and apparel industry to refer to the cost of producing a garment, excluding the cost of materials. It represents the direct labor cost of producing the garment, including cutting, sewing, finishing, and any other operations required to complete the garment. The cost of making a garment is also known as the direct cost or the conversion cost.

The cost of making a garment is a significant factor in determining the overall cost of production and the final selling price of the garment. It is calculated by adding up the direct labor costs, including wages, benefits, and other labor-related expenses, associated with producing the garment.

Normally at present (after starting the new salary scale) in Bangladesh, we calculate the CM of any item consider the overhead sewing machine cost 1200 tk to 1400 tk/day which means $15.38 to $17.95/per day.

The above is for a non-compliance factory. For a compliance factory, the per day machine cost will be 1800 tk to 2100 tk ($23.08 to $26.92).

Example:  If an items produce 1600 pcs per day using 25 machines then what would be the CM cost ???

CM cost = Overhead machine cost X require machine / produce quantity X 12
= (1800 X 25 / 1600 )X 12
= 337.5 Taka
= $ 337.5/78
= $ 4.32 /dozen

Calculate the CM of a Garment

Calculate the CM after discussion with your production department. It’s varies depends on require machine qty & output qty.

Cost of Making of a Garment
Cost of Making of a Garment
To find out the CM of an item you must need the following 06 (six) information at first, as listed below:
  • The monthly total expenditure of your factory with factory rent, commercial cost, electricity bill, water bill, transportation, repairing, worker & staff wages, etc. (8hrs/day) in Bangla taka. Suppose-50,00,000/tk
  • Qty of running Machine of your factory of the following month (which total expenditure we have considered here). Suppose- 100 machines.
  • A number of machines to complete the layout for the following Items (which CM we are calculating). Suppose – 25 machines.
  • Production target/capacity of the following items, per hour from the existing layout, excluding alter & reject. Suppose 200 pcs per hour.
  • The total working day of the following month,(though the house rent, commercial expenses, machine overhauling & some other cost remain same)Suppose- 26 days.
  • If you want to calculate the CM in US$ (dollar) then pls input the present dollar conversation rate BDTk. Suppose $1 = 78 tk.


= (SAM of the garment * Minute costing of the labor) / Line efficiency (%)


= Overhead machine cost X require machine/produce quantity

= [{Monthly total expenditure of the following factory / (26 X Qty of running Machine of your factory of the following month)}] X (Number of machines to complete the layout) / produce quantity per day.

= [{50,00,000 / (26 X 100 )} X 25] / {(200) X 8}] X 12

= [{192307.7 / (100) X (25) } / 1600] X 12

= (48,076.9 / 1600) X 12

= 30.048 X 12

= 360.58 Taka

= $ 360.58/ 78

= $ 4.62/dozen

This is the making cost (12 pcs) garments.

Author of this Article:
Noor Ahmed Raaz
B.Sc. in Apparel Manufacturing
Asst. Merchandiser
Opex Sinha Group, Narayongonj
Email: [email protected]

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4 thoughts on “Cost of Making of a Garment – Calculate CM”

  1. To make benefit from garments we have to calculate its cost of production before making the garments. So, here this article will help us to calculate. Thanks.


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