Dawn SourcingApparel production in China
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Calculator 02

Cost calculator — factory price from the selling price

Your numbers

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Everything between the shelf price and your bank: marketplace fee, advertising, payment fees, returns, discounting.
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Of what is left after selling costs. This is your gross margin on the product, before overhead and salaries.
This changes what duty is charged on. The United States charges on FOB (goods only); Korea, Japan, the EU, Brazil and Mexico charge on CIF (goods + freight).
Find the HS code and duty rate A rough fix before you ask a customs broker. Choose the four options below for a suggested code and a reference duty rate.
For a blend, choose the fibre that is heaviest by weight. 60% cotton / 40% polyester is 'cotton'.
This is an estimate, not a ruling The first six HS digits are the same worldwide, so the rules above get you close, but from the seventh digit every country differs, and blend ratios, trims and construction can move the code. Duty also depends on whether a trade agreement applies. Confirm with a customs broker before you actually clear goods. A wrong declaration means back duty and penalties.
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No forwarder quote yet? Press this. Typical amounts for a single 3,000-piece shipment go in — replace them once you have a real quote.
1 CN¥ =CUR

Result

Maximum factory price
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Maximum price by how you buy

Questions

What margin should I aim for?

It depends what the margin has to pay for. A brand with staff, a warehouse and paid marketing needs far more than a side project. Rather than copying a number, add up your fixed costs for a year and divide by the units you expect to sell — that is the margin per unit you actually need before profit starts.

The calculator says the product is impossible. Now what?

Three levers, in order of how often they work: raise the retail price, cut the selling cost (usually the discounting), or change the product. Squeezing the factory is the lever everyone reaches for first and the one with the least room in it — and the one that costs you quality.

Should I tell the factory my target price?

Yes, once you have a real one. What you should not do is give a target you invented. A factory that has to hit a number will change something to hit it, and if you do not know which number is real you will not know what changed.

Why is the markup multiple shown?

Retail divided by landed cost is the quickest sanity check in apparel. Under about 2.5× there is no room for a markdown, a returns spike or a bad batch. Most brands that survive work at 3× or more.

These numbers are our day job

350,000garments produced and shipped, May–July 2026
100%inspected, not sampled
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