T-Shirt Profit Margins #2

A Real-World Breakdown

The actual profit margin you’ll see as a T-shirt seller depends on your costs and what people are willing to pay. I don’t have the space or staff to manufacture shirts myself—and I’m guessing you don’t either. That kind of overhead is too steep. So, let’s look at three realistic ways to sell for-profit T-shirts and the potential profit margins for each.

Option 1: Buying in Bulk and Reselling “As Is”

A savvy entrepreneur might score bulk T-shirts that have passed quality inspection. Sure, you can buy factory rejects for $1 (holes, stains, or other issues), or “irregulars” with minor defects for $1.89—but if you’re reselling for a profit, you’ll probably want clean, quality shirts.

I found 100% cotton adult men’s tees for $2.18 each (purchased by the dozen). If we buy 100 of them, that’s a $218 upfront cost.

Next comes selling. If our customers aren’t local, we’ll need to ship—let’s estimate shipping at $3.99 per shirt. Now, these are plain white T-shirts, so pricing them high would be a tough sell. You might need strong ad copy to convince someone to buy it from you for $8 instead of from a big box store for $5. A copywriter might charge $50, and you could throw in another $50 for Facebook ads or Etsy shop setup. That’s $100 in marketing, or $1 per shirt.

Total break-even cost per shirt:

T-shirt: $2.18
Shipping: $3.99
Marketing: $1.00
= $7.17 per shirt

If you mark up the price by 30%, you’d sell at $9.32—let’s round to $9.50. Sell all 100, and you bring in $950 in revenue. Subtract your $717 in costs, and you’re left with $233 net profit, or a 25% profit margin.

Option 2: DIY Design + Transfer Printing

Let’s say you want to add value. That means adding meaning—and that usually means identifying a niche. Astrology is a good one: there are 12 zodiac signs, and you’ve got shirts by the dozen. So you create one design per sign and target astrology lovers.

You could DIY the artwork if you’ve got the graphic design chops. If not, hire someone on Fiverr or buy a commercial-use vector set (I found one for $9.60). Be sure to read the license terms.

Skip print-on-demand fees and use iron-on transfer paper to print designs at home. If you already have an inkjet printer, you can get 100 sheets of transfer paper for about $100. Total cost so far:

100 shirts: $218
Vector art license: $9.60
Transfer paper: $100
= $327.60 total / $3.27 per shirt

Add your $50 ad budget and $3.99 shipping cost. Break-even price per shirt: $7.77.

Now, markup time:

30% markup = $2.33 profit
40% = $3.10 profit
50% = $3.88 profit

Let’s say you charge $14.99 per shirt. If all 100 sell, that’s $1,499 in revenue. Subtract your $777 total costs, and you net $722, a 48% profit margin.

Option 3: Selling Through Print-on-Demand

Print-on-demand is the easiest route—no upfront inventory, no handling shirts—but your per-shirt cost is higher. One platform I found charges $12.50 for the same shirt we bought earlier for $2.18.

With $3.99 shipping and $50 in ad costs, your break-even price is $16.99. If you sell 100 shirts for $24 each:

Revenue = $2,400
Costs = $1,699
Net profit = $701, or a 29% margin

Slightly lower profit than DIY, but way less hands-on work.

Sources:

Final Thoughts

Whether you’re reselling bulk blanks, customizing your own niche designs, or going all-in on print-on-demand, your profit margin depends on two things: your costs and what people are willing to pay. If you’re already a known brand, you can price your shirts at $35+. If you’re not, you’ll need a good hook, a clear niche, and a clean, compelling offer.

It’s also important to remember that your price point can affect your sales volume. A higher price may increase your profit per shirt—but could also reduce the number of shirts you sell. On the flip side, a lower price might boost volume, but leave you with thinner margins. Testing different price points and understanding your audience is key.

If you’re already a known brand, you can command premium pricing–$35+ isn’t unreasonable. But if you’re just starting out, you’ll need a clear niche, compelling design, and a price that feels like a no-brainer to your target customer.

Bonus Section: Pricing Strategy & Customer Psychology

Setting the right price isn’t just about covering costs and hitting a T-shirt profit margin. It’s about positioning your product in a way that makes people want to buy it and feel good about the purchase.

Here are a few things to keep in mind when choosing your price point:

💡 Perceived Value Matters More Than Actual Cost

Customers aren’t comparing your shirt to a spreadsheet of materials—they’re comparing it to how it feels to own it. If your shirt taps into identity (e.g., astrology, music, a shared belief or sense of humor), you can often charge more because it feels special, not generic.

📉 Too Cheap Can Backfire

If your shirt is priced too low, buyers may assume it’s low-quality, even if it’s not. A $7 shirt might get skipped in favor of a $15 one simply because the higher price suggests better quality or more intention behind the brand.

🧠 The $14.99 Effect

Psychologically, pricing just under a round number (like $14.99 instead of $15) often performs better. People perceive it as significantly cheaper, even though the difference is just a penny.

🎯 Test and Tweak

If you’re selling on a platform like Etsy or using paid ads, test a few price points. See how a $12.99 shirt compares in performance to a $17.99 one. Your ideal price might not be the cheapest. It might be the one that makes the right buyers feel like they’ve found “the one.”

💬 Bonus Tip: Tell a Story

If your shirt has a story, why you made it, what it represents or who it’s for. Don’t be afraid to share it. Storytelling increases perceived value and builds trust. It makes your product more than a shirt; it makes it a statement, a joke, a mood, or a memory.

💡 DIY T-Shirt Sales Breakdown (Based on 100 Shirts)

Shirt cost: $2.18
Design license: $9.60 (flat)
Transfer paper: $100 (flat)
Advertising: $50 (flat)
Shipping per shirt: $3.99
Total cost: $776.60
Selling price per shirt: $14.99
Total revenue: $1,499
Net profit: $722.40
Profit margin: 48.2%

📝 Side Note

Quick Reality Check: Yep, I crunched the numbers—and they actually work. After baking in the ad cost and shipping (because yes, someone has to pay for postage), the break-even price lands at $7.77. At a selling price of $14.99, that leaves a net profit of $722.40 and a tidy 48.2% profit margin. Not bad for some iron-on designs and a niche audience that lives for a personalized zodiac tee.

✂️💫 DIY Shirts, Real Profits – By the Numbers

Here’s how it shakes out:

Shirt cost: $2.18 each
Design license: $9.60 total
Transfer paper: $100 total
Ad budget: $50
Shipping: $3.99 per order
Break-even price: $7.77
Your price: $14.99
Revenue: $1,499
Total cost: $776.60
Net profit: $722.40
Profit margin: 48.2%

💥 Not bad for a few trips to the post office and a niche full of true believers. You’re not Gucci—but you’re definitely not guessing.

Nicole H