T-Shirt Printing Profit Margin Calculator: Margin and Markup Per Shirt
Work out the profit margin, markup, and gross profit on a printed t-shirt from its price and production cost — the numbers that tell you whether your pricing covers blanks, printing, labor, and the costs of selling.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Profit margin | Markup | Profit |
|---|---|---|---|
| $22 price · $7 cost (68.2%) | 68.18% | 214.29% | $15.00 |
| $18 price · $5 cost (screen print) | 72.22% | 260.00% | $13.00 |
| $25 price · $13 cost (print-on-demand) | 48.00% | 92.31% | $12.00 |
| $15 price · $8 cost (thin) | 46.67% | 87.50% | $7.00 |
How This Calculator Works
Enter your selling price and the cost to produce one shirt (blank garment, ink or transfer, per-shirt printing). The calculator returns gross profit per shirt, the margin as a percent of price, and the markup as a percent of cost. Keep labor, equipment, and selling fees out of the unit cost — the margin has to cover those.
The Formula
Profit Margin and Markup
Markup = (Revenue − Cost) / Cost × 100 — the same profit measured against cost instead of revenue
Worked Example
A shirt priced at $22 costing $7 to produce earns $15 gross profit — a 68.2% margin and a 214% markup. Printed apparel is known for strong per-shirt margins, which is why the space is crowded. But the gross profit still has to cover your labor (designing, printing, packing), equipment and its maintenance, and selling fees (marketplace commissions, payment processing, shipping). The print method matters too: screen printing is cheap per shirt at volume but has high setup cost, while print-on-demand has no setup but a higher per-shirt cost that compresses the margin.
Key Insight
T-shirt printing has attractive headline margins, which is exactly why so many sellers underestimate the real costs and over-compete on price. The unit cost (blank plus ink) is the easy part; the margin must also absorb your time, equipment, and the heavy fees of selling apparel online. The economics flip with method and volume: screen printing rewards volume (low per-shirt cost once you've paid the setup), while print-on-demand and heat-transfer suit low volume and customization but at a higher per-shirt cost and thinner margin. Three pricing principles: price on full delivered cost including your labor, account for marketplace and shipping fees that can take 20%–35% off the top, and don't race to the bottom — printed apparel sells on design and brand, not on being the cheapest. A strong margin per shirt is meaningless at low volume, so the business works when the margin holds across real sales after every fee.
Frequently Asked Questions
How is t-shirt profit margin calculated?
Gross profit is the price minus production cost; margin is gross profit divided by the price, times 100. A $22 shirt costing $7 has $15 profit — a 68.2% margin and a 214% markup.
What's the difference between margin and markup?
Margin is profit as a percent of the selling price; markup is profit as a percent of cost. The same $15 on a $7 cost is a 214% markup but a 68.2% margin. Sellers often quote the bigger markup number, but profitability is driven by margin after all costs.
Should labor be in the cost per shirt?
Not in the unit cost here — keep that to the blank, ink/transfer, and per-shirt printing. But your labor (designing, printing, packing) is a real cost the margin must cover. After computing the material margin, check that the price also pays you fairly for the time each shirt takes.
How does the print method affect margins?
A lot. Screen printing has a low per-shirt cost at volume but a high setup cost, so it rewards large runs. Print-on-demand and heat transfer have no setup but a higher per-shirt cost, which thins the margin — better for low volume and customization. Match the method to your order sizes.
What fees eat into the margin when selling?
Marketplace commissions (Etsy, Amazon, Shopify), payment processing, and shipping and packaging — together often 20%–35% off the top. Print-on-demand platforms also take their cut. Build cushion into the gross margin so the shirt still profits after the real costs of getting it to the customer.
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Methodology & Review
Gross profit is the price minus the unit cost; margin is gross profit as a percent of the price; markup is gross profit as a percent of cost. Unit cost should include the blank shirt, ink/transfer, and any per-shirt printing cost; it excludes your labor, equipment, and selling fees, which the margin must also cover.
Written by Ugo Candido · Last updated May 22, 2026.