How the calculator works
- Fabric: consumption × price per metre or kg × (1 + cutting waste).
- Trims and outside work: trims + packaging + printing, embroidery or washing, per piece.
- Labour: the labour cost per piece as you know it, or total monthly wages ÷ monthly output.
- Overheads: monthly overheads ÷ monthly output.
- Rejects: the sum of the above ÷ (1 − reject rate), because only good pieces are sold, so they carry the cost of the damaged ones.
Margin is not markup
If a piece costs 100 and you want a 20% margin on the selling price, the price is 125, not 120: 100 ÷ (1 − 0.20) = 125. The profit of 25 is 20% of the price and 25% of the cost. Add 20% to the cost and sell at 120, and your real margin is 20 ÷ 120, about 16.7%.
Common costing mistakes
- Fabric without waste: what is lost in cutting is fabric you paid for; leave it out and the gap shows up when you buy for the next order.
- Forgetting overheads: rent, power and maintenance are paid whatever the output, and each piece's share rises as output falls.
- Ignoring rejects: a damaged piece used fabric and labour, and only the good pieces pay for it.
- Confusing margin and markup: as in the example above, adding a percentage to cost gives a smaller margin than that percentage.
- Old material prices: cost at today's purchase price, not the last invoice.
This is an estimate made before production. Once the order starts, ProTrack ties every stage to what it actually costs and to the contract it belongs to, and computes expected and actual profit as the work proceeds, so an overrun shows while it can still be acted on.
Questions
Is the calculator free?
Yes, and there is no sign-up.
Do you store the figures I enter?
No. The calculation runs in your browser; the figures are not sent to us or stored by us. To come back to them, use "Copy link to this calculation": the figures are carried in the link itself.
Should I work in metres or kilograms?
In the unit you buy the fabric in. Pick the unit and enter the consumption and the price in that same unit.
Why is the suggested price higher than cost plus the margin?
Because the calculator takes the margin on the selling price, not on cost. A 20% margin means profit is a fifth of the price, which takes a 25% markup on cost.
Want this in a spreadsheet you can keep? Download the free Excel template (in Arabic).
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