Apparel Profitability Model

T-Shirt Profit Margin Calculator

Calculate your exact net profit per shirt factoring in wholesale garment blanks, DTG or screen printing, custom neck tags, packaging, and ad CAC.

Apparel & T-Shirt Production Parameters

Direct Shirt COGS$10.50
Break-Even Price$24.59
Net Profit$6.71
Net Margin %20.97%
Quick Answer: How do you calculate profit margins for selling custom t-shirts?

To calculate custom t-shirt profit, subtract the blank garment cost, printing fee (DTG or screen print allocation), custom neck tags, packaging, shipping, marketplace fees, and advertising costs from your retail price. Net profit equals retail price minus total landed garment and fulfillment expenses.

What the T-Shirt Profit Margin Calculator Does

Apparel is one of the largest categories in direct-to-consumer ecommerce, but pricing custom t-shirts requires balancing multiple production variables. A blank shirt invoice is only the first step: print technique (screen printing vs direct-to-garment DTG), additional print locations, woven neck tags, poly mailers, and shipping postage heavily impact unit margins.

The MerchSites T-Shirt Profit Margin Calculator structures every apparel production tier. It calculates your exact gross garment margin, net profit per shirt, contribution profit before ad spend, and maximum allowable customer acquisition cost.

Who Should Use This Calculator

Designed specifically for apparel brands, merchandise printers, and clothing sellers:

Independent Apparel Brands

Streetwear brands and graphic tee labels purchasing wholesale blanks in volume and decorating via local print shops.

Merchandise & Band Merch Creators

Musicians, YouTubers, and podcasters selling limited-edition event merch online or on tour.

Garment Blank Tiers & Material Costs

Wholesale blank t-shirt prices vary based on fabric quality, cotton weight (GSM), and brand reputation:

Garment TierExample BrandsAvg Blank CostTarget Retail Price
Economy / PromoGildan 5000, Fruit of the Loom$2.20 - $3.50$18.00 - $22.00
Mid-Tier RetailBella+Canvas 3001, Next Level 3600$4.00 - $5.80$24.00 - $30.00
Heavyweight / StreetwearComfort Colors 1717, LA Apparel 1801GD$6.50 - $9.50$34.00 - $44.00

DTG vs Screen Printing Quantity Cost Curves

Direct-to-Garment (DTG) has no screen setup fees, making it ideal for 1 to 24 shirts ($4.00 to $7.00 print cost per shirt).

Screen Printing carries setup fees per screen ($20-$30 per color), but unit print costs drop drastically on production runs over 50 shirts ($1.50 to $3.00 per shirt).

Worked Example: $28 Heavyweight Graphic Tee

An apparel brand sells a mid-tier combed cotton graphic tee for $28.00 retail with $4.00 customer shipping (Total Payment = $32.00).

Total Customer Payment ($28 Shirt + $4 Shipping):$32.00
Wholesale Blank Shirt (Bella+Canvas 3001):-$5.20
Front Screen Print Fee (Bulk 100-run):-$2.80
Custom Screen Printed Neck Tag:-$0.60
Custom Poly Mailer Bag:-$0.80
Outbound USPS Ground Postage:-$4.20
Payment Processing Fee (2.9% + $0.30):-$1.23
Contribution Profit (Pre-Ads):$17.17
Meta Facebook Ad CAC per Order:-$7.50
Actual Net Profit per Shirt:+$9.67 Net Profit (30.2% Net Margin)

Common Apparel Pricing Pitfalls

Underestimating Shipping Costs for Heavy Cotton: Heavyweight 240+ GSM fleece and oversized hoodies weigh over 1 lb, pushing postage into higher USPS/UPS priority rate tiers.

Frequently Asked Questions

What is a normal profit margin for t-shirt sales?

A standard gross margin for custom t-shirts is 50% to 65%. Net profit margins after accounting for shipping, transaction fees, and advertising CAC typically fall between 20% and 35%.

Last Updated: July 2026

Financial Disclaimer: MerchSites tools and guides provide estimates for product pricing, margin analysis, and expense planning. All calculations are performed locally in your web browser. Content is for educational purposes and does not constitute formal tax, legal, or accounting advice.