Carpets are three-dimensional home textile products. These consist of two parts, namely backing and pile. The carpet backing is produced by warp and weft yarns. The piles make actual functioning face of the complete carpet with desired design and pattern. Fundamentally, carpets are grouped into two categories on the basis of its producing systems: machinemade and handmade carpets. Machinemade carpet producing systems comprise tufting, weaving, knitting, braiding, needle felting, fusion bonding and flocking. Handmade carpets are manufactured in three different ways, namely knotted, flat woven and tufted. Persian or Sehna, Tibetan, Turkish or Ghiordes, Spanish and Kiwi knots are used in manufacturing of hand knotted carpets. Among these, Persian knot is extensively used in handmade carpet segment [1–۴]. Raw materials commonly used for manufacturing of handmade carpets are wool, silk, polypropylene and nylon as pile fibres whereas cotton, jute, polyester and polypropylene fibres are used as carpet backing. Wool in pile yarn is extensively used in handmade carpets because of its excellent properties in terms of hand, durability, stain-resistance, dyeability, flame resistance, insulation, and biodegradability [2]. Carpets are costlier products than normal apparel. Carpet manufacturers are always trying to reduce carpet manufacturing cost by using cheap raw materials. Jute is bio-degradable, recyclable, environment friendly and cheapest vegetable fibre procured from the bast of the plant’s stem. It is the second most important vegetable fibre after cotton, in terms of usage, consumption, production and availability globally [5]. Jute materials are used in packaging, sacking, ropes, twines and home textiles including carpet backing etc. [6, 7]. The presence of wax, pectin and mineral matters creates problems during dyeing, printing and finishing of jute materials [8]. It is also physically coarse, harsh and stiff [9]. As a result, this natural fibre needs proper chemical processing (pretreatment and after treatment) to make it attractive to consumer and to improve its functional properties. It has been observed that jute yarns improve its lustre, dyeing and moisture absorptive properties after the treatment with 18% (w/w) sodium hydroxide (NaOH) solution. Wool like crimps is developed in the jute fibre due to non-uniform swelling of the fibre cell wall so that this process is called woollenization or mercerization of jute yarns [10]. When jute yarn is used in carpet pile, it possesses poor resilience and high fibre shedding behaviour in comparison to wool carpets. Rahman et al. [11] treated jute carpet pile yarns with dimethylol dihydroxy ethylene urea (DMDHEU) using magnesium chloride as catalyst. The test results showed improvements in the performance characteristics of the treated jute carpets than untreated jute carpets. The main aim of this research is to study the cost– benefit analysis of Persian hand knotted carpets by using wool, untreated jute and chemical treated jute pile yarns. The performance properties (abrasion and compressional behaviours) of Persian jute hand knotted carpets are also investigated and compared with wool carpet.