What does an embroidery price have to cover?

Before you can quote, you need every cost on one list, split into the ones you pay for each piece and the ones you pay once for the whole job.

CostPer piece or one-offWhere the number comes from
Blank garmentPer pieceYour supplier invoice, plus your markup
Machine timePer pieceRun time for the design, times your machine hour rate
ThreadPer pieceStitch count, times thread use per 1,000 stitches, times your cone price
Stabilizer and toppingPer pieceThe sheet size you cut per garment, times your roll price
Digitizing and setupOne-offA flat price per design, plus threading up, a test sew and approval
Labor and overheadPer piece, through the machine hour rateYour own accounts, divided by productive machine hours

Margin goes on last, after every line above. Finishing steps belong on the list too: folding and bagging, individual names, relabeling, box packing and freight. If the job needs them, they are costs, not favors.

How do you work out your machine hour rate?

The machine hour rate is the number that turns minutes into money, and it is the one figure nobody can give you. Build it from your own accounts:

  1. Add up a year of costs the shop carries whether or not a machine is running: operator wages and payroll costs, rent, power, insurance, machine finance or depreciation, service contracts, software, needles and parts.
  2. Count the hours you can realistically sell. Take the staffed hours, then cut them for setup, maintenance, sampling, training and the gaps between jobs. The hours left carry every cost above.
  3. Divide. Annual cost divided by productive machine hours gives your cost per machine hour. That is a cost, not a price: margin comes later.

Do this per machine group. A six-head and a single-head neither cost the same per hour nor produce the same number of pieces per hour, so quoting both at one rate hides where you make money. See how long embroidery takes for the head-count math.

Why the hours matter more than the costs

Most shops get the cost side roughly right and the hours side badly wrong, by counting every staffed hour as sellable. Halving your productive hours doubles your cost per hour, and that is usually where the gap is when the prices feel fine but the bank balance disagrees.

How much machine time does a design take?

Stitching time is the stitch count divided by the machine speed, and then everything else that happens around it. Our run time calculator uses this formula, which is worth knowing by hand:

  • Per piece = (stitches divided by speed, plus trims times seconds per trim, plus color changes times seconds per change) divided by your efficiency allowance
  • Per cycle = per piece, plus handling time for hooping, loading and unloading
  • Order time = cycles (quantity divided by total heads, rounded up) times the cycle time

The efficiency allowance covers thread breaks and the slack in a real day. Machine speed is a published spec you can check: Barudan gives up to 1,300 stitches per minute on flats and 1,000 on caps for its single-head machines, Ricoma gives 1,200 spm for the 15-needle Marquee, and Melco gives 1,500 spm for the EMT16X pantograph. Your own average will be lower, because caps, dense fills and delicate fabrics all run slower. If the design does not exist yet, the stitch count estimator gives a planning count from the finished size.

What do thread, stabilizer and digitizing add?

Thread is small per piece and real across a run. Madeira puts consumption at about 5 m of top thread and 3 to 3.5 m of bobbin thread per 1,000 standard-length stitches, and about 200,000 stitches from a 1,000 m cone of 40 weight thread at a 4 mm stitch length. A 10,000-stitch logo is therefore about 50 m of top thread and 30 m of bobbin per piece. Multiply by your own cone and bobbin prices, and add waste. The thread consumption calculator does this for a whole order.

Stabilizer is priced by the sheet you cut, not the roll: measure the piece your operators cut for that hoop, work out how many come off a roll, and divide. Toppings for terry and fleece are an extra sheet, so towel work carries a higher consumable cost than a polo.

Digitizing is paid once for the design, however many pieces you sew. That makes it the single line that genuinely falls per piece as the quantity rises. Our digitizing is a flat price per design, set by complexity and never per stitch, from $10, with all machine formats and a stitch simulation preview included. For what drives that price, see how much embroidery digitizing costs and the digitizing price list.

File quality is a cost too: a design with hundreds of unnecessary trims, or one dense enough to break thread, costs machine time on every piece and every head for the life of the program. See embroidery stitch count pricing for why a padded file is no bargain.

What does the build-up look like on an example order?

Here is the whole method on one job. Every input marked as an example is a placeholder: use your own. The only real figure is our published flat digitizing price.

The job: 24 polo shirts, one left chest logo of 10,000 stitches in 4 colors with 8 trims, sewn on a six-head machine. Example inputs: machine speed 800 spm, efficiency allowance 85%, 0.5 seconds per trim, 2 seconds per color change, 1.5 minutes handling per cycle, blank garment $8.00, machine hour rate $30.00, top thread $12.00 per 5,000 m cone, bobbin thread $0.005 per meter, stabilizer $0.12 per garment, target gross margin 40%. Digitizing is one Simple design at the published $10.00.

At those settings each piece takes about 14.9 minutes of machine time, so a cycle of six is about 16.4 minutes and the 24 pieces need 4 cycles, about 1 hour 6 minutes in total. That is about 2.73 minutes of machine time per piece.

LineHow it is worked out (example inputs)Per piece
Blank garmentExample cost $8.00$8.00
Machine time2.73 min at an example $30.00 per machine hour$1.37
Top thread50 m at an example $0.0024 per meter$0.12
Bobbin thread30 m at an example $0.005 per meter$0.15
StabilizerOne example sheet at $0.12$0.12
Digitizing$10.00 flat, once, divided by 24$0.42
Cost per pieceSum of the lines above$10.18
Price at an example 40% margin$10.18 divided by 0.60$16.97

That is $407.28 for the order. Run the same numbers, and your own, through the embroidery pricing calculator, which also handles multiple locations, minimums and a flat stitching price instead of a per-stitch one.

How should quantity breaks work?

A quantity break should reflect a cost that actually falls, and on an embroidery job only the one-off costs do. The garment, the thread, the stabilizer and the machine time per piece are the same on piece 500 as on piece 5. Using the same example inputs, only the digitizing share moves:

QuantityDigitizing per pieceCost per piecePrice at 40% marginOrder total
24$0.42$10.18$16.97$407.28
48$0.21$9.97$16.62$797.76
72$0.14$9.90$16.50$1,188.00
144$0.07$9.83$16.38$2,358.72

The whole break between 24 and 144 pieces is 59 cents. If your price list drops several dollars a piece over that range, the extra discount comes out of your margin, not out of a falling cost. Genuine reasons to give more are fewer setups across a program, a full machine instead of a part-loaded one, and garments bought better by the case.

A reusable file helps here: the same design sewn again next season costs nothing more to digitize. Ours come with unlimited revisions and no time limit, hand digitized and checked by a second digitizer. See embroidery digitizing, or the embroidery business pricing hub for the rest of the model, including contract embroidery pricing.

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Frequently asked questions

There is no market rate we can give you, and any page that publishes one is guessing at your costs. Build the price up from your own garment cost, machine hour rate, thread, stabilizer and digitizing, add the margin you want, then check the result against what your customers accept. The example figures above exist to be replaced.
Charge for the work, under whichever name your customers accept. Threading up, a test sew, a hoop or cap frame change and an approval round all take time that the per-piece price does not cover on a short run. Many shops fold it into a minimum order charge instead of a separate line.
Take the garment line out of the build-up, then raise the stitching price: you have lost the garment margin and taken on the risk of ruining something you cannot replace. Agree a written spoilage policy first. See contract embroidery pricing.
Most shops do, as its own line, because it is a one-off that the customer keeps the benefit of on every reorder. Whether you pass on your cost, mark it up or absorb it on large orders is a business decision. Our price is flat per design, from $10, so it is easy to quote: see the price list.
Price each location separately, because each one is another hooping, another run and often another minimum. The pricing calculator multiplies the stitching charge by the number of locations while keeping the one-off costs shared across the job.
That depends on your market, your overhead and whether you supply the garments, so we do not publish a figure. The 40% in the example is an example. What matters more is that the cost side is complete: a healthy-looking margin on an incomplete cost list is not a margin.

Sources

Sources checked 20 September 2026.