How much profit should I make on a T-Shirt?
How Much Should You Make on a T-Shirt? Real Profit Margins for POD Sellers
If you’re new to selling print-on-demand T-shirts, the question “How much should I make on a T-shirt?” is probably the first thing on your mind.
And honestly?
It should be — because pricing is one of the fastest ways to either grow your business… or quietly kill it.
As a print-on-demand seller on Etsy and Shopify, I’ve tested pricing strategies, learned the hard way what customers trust (and what they don’t), and discovered the margins that actually keep a business alive — after you pay taxes and fees.
This guide breaks down what I’ve learned so beginners and intermediate sellers can avoid the costly mistakes most people make in their first months.
The Simple Answer: You Should Aim to Make ~40% Profit Margin
Let’s start with the number everyone wants:
👉 A healthy profit margin for a print-on-demand T-shirt is around 40%.
This gives you enough cushion for:
- Platform fees
- Transaction fees
- Marketing
- Taxes
- Occasional discounts
- Room for growth
- The ability to scale without running yourself into the ground
Anything much lower than this and you’re essentially working for free — you just don’t realize it yet.
How I Calculate Profit on a POD Shirt
My pricing is based on:
- Markup
- Profit margin
- Production cost
- Competitor range
- Taxes + fees
You can calculate your margin like this:
Profit Margin = (Selling Price – Cost) / Selling Price
Example:
If your POD provider charges $12 for a shirt, and you sell it for $25:
- Profit = $13
- Margin = $13 / $25 = 52%
That’s great.
But after shipping, platform fees, VAT/sales tax, payment fees, and discounts, this might drop closer to 35–40% — which is exactly where you want to be.
Why You Should NEVER Price Too Low
This is one of the biggest mistakes beginners make.
When I first started, I noticed something surprising:
💡 If you price too low, people actually trust you less.
They assume:
- The quality is cheap
- The print will peel
- The fabric will be thin
- You’re inexperienced or not legitimate
Customers expect T-shirts to fall into a certain “normal” price range.
If you fall too far below your competitors, you don’t look like a bargain.
You look suspicious.
And to maintain even a small profit at those low prices, beginners often choose lower-quality shirts — which leads to complaints and zero repeat buyers.
Why Pricing Too High Also Hurts You
The opposite problem exists too.
If you price your shirt too high (even with great quality), customers feel:
- You’re gouging
- You’re inexperienced
- Your reviews don’t justify the price yet
You need to be in the same general price range as your competition, especially on marketplaces like Etsy where shoppers compare listings instantly.
Your price can be slightly above average — but it must feel reasonable.
Case Study: How a Small Discount Increased My Revenue
One of the pricing strategies I tested was:
👉 A small discount on the second item.
It worked incredibly well.
Here’s why:
- Customers feel like they’re getting a deal.
- Your average order value increases.
- You sell more without lowering your main price.
- It doesn’t damage the perceived value of the shirt.
Discounts on the base product often look desperate.
But discounts on additional products look like an incentive — and people respond to it.
Beginner vs. Intermediate Pricing Strategy
Your pricing strategy actually changes depending on where you are in your business.
When Starting Out
- Slightly lower margins
- Aim for higher volume
- Build reviews, trust, and social proof
- Don’t undercut competitors, but do stay competitive
This helps you secure your initial customer base.
Once You’re Established
- Increase your margins
- Reduce dependency on volume
- Reinforce the value of your quality
- Raise average order value with bundles or add-ons
A business with strong reviews can justify better pricing — and better margins.
The Role of Quality in Your Pricing
This is one of the most important lessons from my experience:
💡 A customer who buys a high-quality shirt at a fair price is far more likely to return.
These repeat buyers are your most profitable customers.
Cheap shirts = cheap impressions = cheap customers
High-quality shirts = happy customers = repeat buyers
Your long-term profit depends more on retention than raw margin.
So… How Much Should You Make on a T-Shirt?
Here’s the sustainable formula:
✔️ Beginner POD seller
Aim for 30–40% margin
Competitive pricing × higher volume
✔️ Intermediate seller
Aim for 40–50% margin
Reasonable pricing × loyal buyers × higher perceived value
The Main Takeaway
If you remember only one thing, make it this:
➡️ Don’t go too low with your price.
Low prices:
- Destroy trust
- Attract low-quality buyers
- Shrink your margins
- Limit your growth
- Put you under pressure to cut corners
Reasonable pricing with healthy margins allows you to:
- Run ads
- Offer occasional discounts
- Pay fees and taxes
- Maintain quality
- Grow your brand sustainably
And most importantly —
you get paid fairly for your work.
Anyone confused by the marketing claims surrounding “anti-odor” fabrics
Choose cotton for casual use
Choose polyester for Sport use