What will this order
actually cost you?
FOB price is only part of the number that matters. Add duty and freight and the real landed cost per unit can look very different — sometimes enough to change which country makes sense to source from. Adjust the fields on the left and watch every number update instantly.
Select a garment, fabric, quantity, and destination on the left to see your live cost breakdown
Last updated: 13 June 2026
FOB Price Is Never the Whole Story
When a factory quotes you a price, it's almost always FOB — Free on Board — meaning the cost to manufacture, pack, and load the goods onto a vessel at the export port. That number alone tells you very little about what the product actually costs to get into your hands. Import duty and freight still need to be added, and depending on your destination market and garment category, those two line items can add anywhere from 5% to over 40% on top of the FOB price.
This is also where sourcing country comparisons get misleading if you only look at FOB. A garment that's 20% cheaper FOB from one country can end up costing more landed once duty is added, because trade agreements and tariff schedules vary enormously by country of origin.
Why Bangladesh's Duty Position Is Different
Bangladesh holds least-developed country status, which gives it preferential market access that China and, to a lesser extent, Vietnam don't have in most major destinations. The UK, EU, Australia, and Canada all extend duty-free or close to duty-free treatment on most garment categories from Bangladesh. The US doesn't extend the same blanket preference, but even there, Bangladesh's effective rates on many categories sit below China's standard tariff schedule.
| Destination | Bangladesh | China | Vietnam |
|---|---|---|---|
| United Kingdom | Duty-free (most categories) | ~12% | ~12% |
| European Union | Duty-free (most categories) | ~12% | ~12% |
| Australia | Duty-free (most categories) | ~5% | Duty-free |
| Canada | Duty-free (most categories) | ~18% | ~18% |
| United States | Varies by category, 5–28% | Standard MFN, often higher | Varies by category |
Illustrative only — exact rates depend on the specific HS code for your garment. Confirm with your customs broker before relying on these for a final cost decision.
What "Landed Cost" Does and Doesn't Include
Landed cost in this calculator means FOB price plus duty plus freight — your true cost to get the physical product to your door or port. It does not include warehousing, fulfilment, payment processing fees, return handling, or marketing. When you're setting a retail price, landed cost is the starting point, not the finish line — your net margin after all operating costs will be lower than the gross margin this tool shows.
Reading Your Margin Number
The margin shown color-codes roughly what different gross margin ranges typically mean for a DTC clothing brand. Below 35% is generally considered tight once you account for marketing, returns, and platform fees. The 35–50% range is workable but leaves little room for paid acquisition. 50–65% is healthy for most DTC models, and above 65% is strong — though it's worth sanity-checking that your retail price is still competitive for the category.
Frequently Asked Questions
FOB (Free on Board) is the price a factory charges once the garment is manufactured, packed, and loaded onto the vessel at the export port — Chittagong, for Bangladesh. Everything after that, ocean freight, insurance, and import duty, is the buyer's responsibility, usually handled through a freight forwarder and customs broker.
Bangladesh qualifies for preferential trade access in most major markets due to its least-developed country status. The UK, EU, Australia, and Canada offer duty-free or near duty-free access on most garment categories, and even the US has lower effective rates than China on many categories. China pays standard Most Favoured Nation rates with no preferential reduction.
Landed cost is your all-in cost to get the product into your hands — FOB, duty, and freight combined. It doesn't include warehousing, fulfilment, payment processing, or marketing, which still need to be factored in separately when calculating your true net margin.
This gives a directional estimate based on typical Bangladesh RMG pricing for standard constructions. A real quote will differ based on your exact fabric spec, print or embroidery, trim choices, packaging, and the factory's current capacity. Treat these numbers as a planning estimate to use before requesting a formal quote, not a final price.
Not necessarily. A lower FOB price sometimes reflects lighter fabric weight, simpler construction, or looser quality tolerances. Comparing landed cost is useful for budgeting, but choosing a factory should also weigh fabric quality, certifications, social compliance, and consistency across orders.
Plan the Rest of Your Order
- Production Timeline Calculator — once you've worked out the cost, map exactly when each stage needs to happen to hit your launch date.
- Manufacturer Email Generator — build the right email to get a real quote from a factory.
- GPSR Compliance Checker — if you're shipping to the EU, check what compliance documentation you'll need.