Tailoring & Boutique Profit Calculator

2-minute guide

A boutique can be busy while earning little: custom jobs carry fabric purchases and fitting/rework risk, while alterations typically require less material but consume staff time. The calculator separates cash sales, unit contribution and available tailor-hours to reveal realistic break-even and potential overbooking.

Formula explained

Key assumptions and mistakes

1. A refunded or free redo does not generate new income but still uses fabric/supplies and sewing capacity.
2. Monthly tailor salaries belong in fixed costs, avoiding duplicate labour-cost charges.
3. Break-even is based on preserving the current ratio of custom garments to alterations.

Worked example: custom stitching with alterations

Assume a shop completes 165 made-to-order garments at an average ex-GST price of ₹1,050 and 215 alteration jobs at ₹190 each. Illustrative monthly sales are ₹2,14,100. Once garment fabric, trims, expected free redo materials and a 1.5% payment deduction are counted, contribution is approximately ₹528.65 per custom garment and ₹159.15 per alteration.

Custom garments need two productive tailor-hours each before rework. A 7% redo rate requiring 0.65 hours per case increases expected sewing time. Alterations add 0.45 hours each. At these inputs, the shop needs approximately 434.26 labour hours during the month against four tailors × 6.5 productive hours × 26 days = 676 available hours. No actual tailoring capacity can be inferred from gross shop-opening hours alone.

Profit and mix-based break-even

Total illustrated contribution is ₹1,21,444.50, EBITDA-like operating surplus is ₹67,444.50 and profit before tax is ₹60,944.50 after ₹3,500 interest and ₹3,000 depreciation. Break-even monthly revenue at the current garment/alteration mix is about ₹1,06,658. Different service mixes will change the total contribution and time required; do not extrapolate one historic wedding-season month to the entire year.

Reducing avoidable rework

Track garment measurements, delivery dates, lining/fabric quality and fitting commitments. Customer-supplied fabric may transfer some purchase costs but introduces custody and damage risk. When a garment is returned for unpaid adjustment, both material consumption and staff-hours matter. Rework can lower contribution even when it causes no new invoice or cash outflow.

Better monthly management records

• Track jobs by stitching/alteration type, fabric source, fitting date and promised delivery.
• Separate customer advances from recognised completed-job sales.
• Reconcile cloth and accessories purchased to completed jobs and closing stock.
• Track lost or delayed orders, measurement corrections and free adjustments.
• Review work-in-progress, actual tailor productivity and applicable local employment duties.

Limitations you should understand

This assumes a common pool of similarly skilled tailors and does not model garment pattern complexity, peak festival season, customer advances, refunds or inventory valuation. Break-even scales the entered custom/alteration mix; a different mix produces a different answer.

India compliance context

Check the local shops and establishments requirements, labour law obligations, consumer delivery terms, applicable GST and Udyam registration conditions. None of these automatically follow from model revenue; no statutory turnover threshold is embedded.

Institutional primary sources

• Ministry of MSME — Udyam Registration — Business registration context
• GST Network — Official GST Portal — GST administration context

These sources support regulatory context. No sample prices, input costs, productivity or profit assumptions are claimed to be drawn from them.

How to use this calculator