Textile operations tool

Garment Order Profitability Calculator

Review the actual margin remaining after production and logistics rather than relying only on the original quotation margin.

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Enter your production values to calculate an operational estimate.

  • Order quantity and selling price
  • Actual material, processing, labour and overhead
  • Logistics and fixed order costs

Calculation method

Compare garment order revenue with actual material, processing, labour, overhead, logistics and fixed costs to calculate profit and margin.

Method: actual profit = order revenue − material − processing − labour − overhead − logistics − fixed order cost

Worked example: actual profit on 1000 garments

Selling price is ₹500 per piece; per-piece material, processing, labour and overhead are ₹250, ₹50, ₹60 and ₹40, plus ₹20,000 logistics and ₹10,000 fixed cost.

  1. Revenue is 1,000 × ₹500 = ₹500,000.
  2. Variable operating cost is ₹400,000; logistics and fixed cost bring total cost to ₹430,000.
  3. Actual profit is ₹70,000 and margin is 14% of revenue.

Frequently asked questions

Why compare quoted and actual margin?

Fabric price changes, consumption variance, rework, overtime, delays, freight and claims can materially reduce the margin expected when the order was quoted.

Should rejected pieces remain in order cost?

Yes. Their material and conversion costs were incurred even if they cannot be invoiced, so they should be reflected in actual profitability.

Why compare actual margin with the quotation margin?

The difference reveals consumption, rate, efficiency, rework, freight or overhead variance that should inform the next quotation.

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