T-Shirt Pricing & Profit Calculator
1. Variable Costs (Per Shirt)
2. Order Details & Goals
Recommended Selling Price
per shirt
Mastering T-Shirt Pricing for Your Apparel Business
One of the most challenging aspects of running a custom apparel or print-on-demand business is determining the right price for your products. If you price too low, you lose money on every sale; price too high, and you may lose customers to competitors. This T-Shirt Pricing Calculator simplifies the math by accounting for your material costs, production overhead, and desired profit margins.
The 4 Pillars of T-Shirt Pricing
To ensure your business is profitable, you must accurately calculate the "Cost of Goods Sold" (COGS) for every unit. This involves more than just the price of the blank shirt.
- Blank Garment Cost: The wholesale price you pay for the unprinted shirt. This varies based on quality (e.g., standard cotton vs. tri-blend) and quantity discounts.
- Printing Costs: This includes consumables like screen printing ink, heat transfer vinyl (HTV), sublimation paper, or DTG pretreatment fluids. Do not forget to account for waste.
- Labor & Overhead: Often overlooked, this is crucial. If it takes you 10 minutes to prep, print, and fold a shirt, and you value your time at $30/hour, that is $5.00 in labor cost per shirt. Overhead includes electricity, rent, and equipment wear-and-tear.
- Profit Margin: This is the percentage of the selling price that is actual profit. A healthy margin ensures you have funds to reinvest in the business.
Markup vs. Profit Margin
It is vital to understand the difference between markup and margin when using this calculator:
Markup is added to the cost price to get the selling price. For example, if a shirt costs $10 and you want a 50% markup, you add $5. Selling price = $15.
Profit Margin (used in this calculator) represents how much of every dollar of sales you keep. If a shirt costs $10 and you want a 50% profit margin, the math is: $10 / (1 - 0.50) = $20. This results in a higher selling price than a 50% markup, protecting your bottom line more effectively.
Typical Pricing Standards
While pricing varies by niche, here are general industry benchmarks:
| Order Type | Typical Margin |
|---|---|
| Bulk / Wholesale Orders | 25% – 40% |
| Direct to Consumer (Retail) | 50% – 70% |
| Custom / One-off Boutique | 60% – 80% |
Use the calculator above to experiment with different blank costs and margin percentages to find the sweet spot for your specific market.