Understanding Clothing Production Costs: A Complete Breakdown

One of the most common frustrations we hear from brands is that they do not understand how production costs are calculated. They receive a quote — say, €18 per unit for a hoodie — and have no idea if that is fair, expensive, or suspiciously cheap.

This guide breaks down exactly what goes into a garment's production cost. We will use a standard 350 GSM cotton hoodie as our example throughout.

1. Fabric (40–55% of total cost)

Fabric is the single largest cost component. It depends on:

Example: A 350 GSM brushed fleece in organic cotton might cost €8–12 per metre. A standard hoodie requires approximately 1.5–1.8 metres of fabric (depending on size ratio and pattern efficiency).

Fabric cost per hoodie: €12–21

Fabric wastage (the material lost during cutting) typically adds 5–12%. Efficient pattern layouts minimise this, but some waste is unavoidable.

2. Trims (5–10% of total cost)

Trims include everything that is not the main fabric:

Trims cost per hoodie: €1–3

Custom trims (embossed metal zippers, leather labels, custom hardware) increase this significantly.

3. Labour / CMT (25–35% of total cost)

CMT stands for Cut, Make, and Trim — the actual manufacturing labour.

Labour cost depends heavily on location:

CMT cost per hoodie (Portugal): €5–10

More complex garments (multiple panels, patch pockets, double-layer construction) require more sewing time and therefore higher CMT costs.

4. Print / Embroidery (variable)

If your design includes decoration:

Decoration cost per hoodie: €0–5 (depending on design)

5. Washing and Finishing (0–8% of total cost)

Post-construction treatments:

Finishing cost per hoodie: €0.20–3.00

6. Packaging (2–5% of total cost)

How the finished product is packed:

Packaging cost per hoodie: €0.30–3.00

7. Overhead and Margin (built into quote)

No factory quotes at cost. Overhead includes:

This is typically 15–30% added to the direct costs.

For a 350 GSM organic cotton hoodie, 100 units, made in Portugal:

At 500 units, the same hoodie might cost €25–28 per unit. At 1,000 units, perhaps €22–25. Volume pricing is real.

You might get quotes ranging from €18 to €45 for the "same" hoodie. Here is why:

Fabric quality. A €6/metre conventional cotton fleece and a €12/metre GOTS organic brushed fleece produce very different garments at very different prices.

Labour cost. A factory in Bangladesh and a factory in Portugal have fundamentally different labour costs.

Volume. 50 units and 1,000 units have completely different per-unit economics.

Factory tier. A factory making for luxury brands has higher standards (and costs) than one making for fast fashion, even in the same country.

Hidden costs. Some factories quote low but charge separately for sampling, pattern making, quality control, or labelling. Always ask what is included.

Ask for a line-by-line breakdown

Any reputable factory will break down your quote into fabric, trims, CMT, decoration, and finishing. If they will not, that is a red flag.

Compare like for like

Ensure every factory is quoting the same specs: same GSM, same composition, same construction, same finishes. A €18 quote using 250 GSM conventional cotton is not comparable to a €30 quote using 400 GSM organic.

Factor in total cost

The cheapest per-unit price is not always the cheapest total cost. Consider:

Ask about payment terms

30% deposit / 70% on completion is standard. 100% upfront should make you cautious. Net-30 or net-60 terms are a sign of a confident, established factory.

At White Cotton, we provide transparent, itemised quotes. You see exactly what you are paying for — fabric, trims, CMT, finishing, packaging — broken down line by line.

We do not do hidden fees. Sampling costs are quoted upfront. If your design is complex and will cost more, we tell you before you commit.

We also offer volume pricing tiers so you can see exactly how your per-unit cost drops as quantity increases. This helps you plan your orders and budget more effectively. Get a quote or read our guide to starting a clothing brand for the full picture.