Thobe tailoring cost and profit margin calculator
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The thobe tailoring cost calculator is a free tool that works out the full cost of one thobe — fabric, sewing, accessories and its share of monthly fixed costs — and compares it with the selling price excluding VAT, so you can see your profit per thobe, your profit margin and how many thobes a month cover your fixed costs.
Type your shop's numbers over the example values and the results update instantly. Everything is calculated in your browser: the numbers are not sent anywhere and are not saved.
Work out your thobe cost and profit
Example values — replace them with your own
Result per thobe
- Fabric cost
- 87.50 SAR
- Variable cost (fabric + sewing + accessories)
- 137.50 SAR
- Share of monthly fixed costs
- 87.50 SAR
- Full cost per thobe
- 225.00 SAR
- VAT amount
- 39.13 SAR
- Net price excluding VAT
- 260.87 SAR
- Profit per thobe
- 35.87 SAR
- Profit margin
- 13.8 %
- Monthly break-even
- 142 thobes a month
With these numbers each thobe earns SAR 35.87, a 13.8% margin on the net price, and your monthly fixed costs are covered at 142 thobes a month.
The results shown are for the example values. Turn on JavaScript to update them with your numbers.
Everything is calculated in your browser: the numbers are not sent to any server and are not saved.
How to calculate the cost of tailoring a thobe
The calculation runs in steps, using the same formulas as the calculator:
- Fabric cost = fabric metres per thobe × price per metre.
- Variable cost = fabric cost + sewing labour + accessories, buttons and packaging.
- Share of fixed costs = (rent + salaries + other monthly costs) ÷ expected thobes per month.
- Full cost per thobe = variable cost + share of fixed costs.
- Net price excluding VAT = selling price ÷ 1.15 when the price includes 15% VAT, and VAT amount = selling price − net price.
- Profit per thobe = net price − full cost, and profit margin = profit ÷ net price × 100.
- Monthly break-even = monthly fixed costs ÷ (net price − variable cost), rounded up to the next whole thobe.
Worked example with the calculator's values
These are example numbers for illustration only, not market averages: a thobe that needs 3.5 metres of fabric at 25 per metre, with 40 for sewing labour and 10 for accessories and packaging, in a shop with 17,500 of monthly fixed costs (4,000 rent, 12,000 salaries and 1,500 other costs) that expects 200 thobes a month, sold at 300 including VAT.
- Fabric cost = 3.5 × 25 = 87.50, and variable cost = 87.50 + 40 + 10 = 137.50.
- Share of fixed costs = 17,500 ÷ 200 = 87.50, so the full cost = 225.00.
- Net price = 300 ÷ 1.15 = 260.87, and the VAT amount = 39.13.
- Profit per thobe = 260.87 − 225.00 = 35.87, a profit margin of about 13.8%.
- Break-even = 17,500 ÷ (260.87 − 137.50) = 141.85, so 142 thobes a month.
Why fixed costs belong in the cost of a thobe
Rent, salaries and power are paid every month whatever the number of thobes, so the fewer thobes you make in a month, the bigger each thobe's share. A price can look profitable when you count only fabric and sewing, then turn out not to cover the full cost once fixed costs are shared out. If your tailor is on a fixed monthly salary, put the salary under salaries and set sewing labour per thobe to zero, so the same cost is not counted twice.
VAT in the calculator
With "Selling price includes 15% VAT" ticked, the calculator takes VAT out of the price before working out profit, because VAT is collected from the customer and paid over to the tax authority, so it is not shop income. If your shop is not registered for VAT, untick it so profit is calculated on the full price.
This calculator is an estimating tool for illustration, not financial or tax advice; check with your accountant before setting your prices.
FAQ
How do I calculate the cost of tailoring one thobe?
Add the fabric cost (metres × price per metre), sewing labour, accessories and packaging, then add the thobe's share of monthly fixed costs: rent, salaries and other costs divided by the thobes you expect to make that month. The result is the full cost that the net selling price has to cover.
Should profit be calculated on the price with or without VAT?
Calculate profit on the net price excluding VAT. If the selling price includes 15% VAT, the net price is the price ÷ 1.15, and the difference is the VAT that is paid over to the tax authority and is not shop income. If the shop is not registered for VAT, the whole price is net.
What is the difference between profit margin and markup?
Profit margin is measured against the net selling price: profit ÷ net price × 100. Markup is measured against cost: profit ÷ full cost × 100. When there is a profit, the markup is higher than the margin for the same amount, and the calculator shows the profit margin.
What does break-even mean for a tailoring shop?
Break-even is the number of thobes at which what each thobe leaves after its variable cost covers all monthly fixed costs, with no profit and no loss. It is monthly fixed costs divided by (net price − variable cost), and every thobe after that adds profit.
Does the calculator save or send my numbers?
No. All calculations run in your browser on your device, so the numbers are not sent to MQDAR's servers or anyone else and are not saved, and the fields return to the example values when you open the page again.
From costing to running your orders
Once you know what a thobe costs and what to charge, the next step is following every order, its fabric and its payments through to handover. MQDAR's men's tailoring software keeps customer measurements and designs, the fabric for each piece, invoices and paid and remaining amounts. See plans and pricing to choose what fits your shop.
