How Much Money Can Custom T-Shirts Make in 2026?

Selling custom t-shirts is like unlocking a secret weapon, helping your dream of making millions from print on demand come closer. According to recent market research, it’s projected to grow to $10 billion by 2025, driven by trends like personalized fashion, company branding, and event merchandise. In this blog post, we’ll dive deep into the question how much money can custom t-shirts make and the factors that affect earnings. So let’s get started.

What Determines How Much You Can Earn

The amount you can make selling custom T-shirts depends on your selling price, total cost (product and fulfillment cost, marketplace fees, advertising costs, etc), and sales volume.

Three levers determine profit, and all downstream sections map back to these:

Selling price: What you charge per shirt

Total cost: Production/blank cost + decorating + packaging + fulfillment + marketplace/platform fees + advertising

Sales volume: How many units you move per month

Here’s a quick look at the numbers. Custom t-shirts usually sell for $20–$40 each. Production costs (shirt, printing, packaging, labor) usually land between $5 and $15. That leaves you a profit margin of 50–70%, depending on how you price things.

Let’s run a simple example:

• Total cost per shirt: $10
• Selling price per shirt: $30
• Profit per shirt: $20

Sell 500 shirts a month, and here’s the math:

500 shirts × $20 profit = $10,000/month

Looks great on paper. But that number isn’t the full story.

Gross Profit vs. Net Profit

Here’s a mistake a lot of new sellers make: they only look at gross profit. And that makes their earnings look way bigger than they actually are.

• Gross profit = Revenue − cost of goods sold (blank shirt + decorating only). It doesn’t account for fees, ads, or overhead.

Example: Sell shirt for $30, production cost $10 → gross profit = $20/shirt.

• Net profit = Gross profit − all remaining costs (marketplace fees, payment processing, shipping, ads, subscriptions, overhead). 

Net profit is what’s left after everything. This is the number that actually reflects take-home earnings.

Example: The same $30 shirt nets closer to $4–$8 once Etsy fees, shipping, and tax are subtracted.

Big difference, right? That’s why tracking net profit matters more than gross.

How Much Do Custom T-shirts Cost To Make?

Before you can price a shirt, you need to know exactly what it costs to make one. Let’s break it down piece by piece.

Production cost

There are two main ways to make custom shirts: do it yourself, or use a print-on-demand (POD) service. Each has its own production cost structure.

Option 1: Do It Yourself

Going the DIY route means juggling a few separate costs: the blank shirt, the decorating method, packaging, and your own labor.

• Blank shirt cost. Prices vary a lot based on brand, material, and where the shirt is made. Buying in bulk (100+ units) usually unlocks wholesale pricing, so always calculate your cost at your real order volume — not the retail price.
• Decorating cost. This runs anywhere from $2 to $8+ per shirt, depending on the method:

• 1-color screen print — $2 per shirt
• Full-color front/back screen print — $4 per shirt
• Multi-location prints — $6+ per shirt
• Embroidery — $8+ per shirt

Try to keep decorating costs under 50% of your blank shirt price. That keeps your margins healthy.

• Labeling and packaging. Custom neck labels, branded packaging, and hang tags all make your product feel more premium. Budget about $0.50 to $1 per shirt for this.

Option 2: Print on Demand

With POD, most of this gets simpler. Instead of juggling separate costs, you pay one set price per shirt that covers production.

Most POD suppliers use direct-to-garment (DTG) printing for standard tees. It’s great for detailed, colorful designs and works well even for small batches.

Costs vary by shirt style, size, and where it’s made. Here’s what production costs typically look like for a size M shirt:

• Classic Unisex T-Shirt (Vietnam-made) — $5.49
• Ringer T-shirt (Vietnam-made) — $9.50
• Gildan 6400 cotton tee (EU-made) — $6.55
• Unisex V-neck T-shirt (Vietnam-made) — $6.55
• Comfort Colors 1717 tee (US-made) — $9.99
• Unisex Jersey Short Sleeve Tee, Bella Canvas 3001 (US-made) — $8.99
• All-over Print Unisex T-shirt (Vietnam-made) — $12

Want tight margins on basics? Vietnam-made Gildan 5000s are hard to beat at $5.49. Want to charge more? US-made blanks cost more upfront, but their quality lets you mark up prices 20–30% without pushback from buyers.

Shipping cost

Shipping is the cost sellers often forget to budget for — and it can quietly eat your whole margin.

Rates depend on your carrier, destination, and package weight. Domestic shipping in the US typically runs $4–$8 per order, while international shipping can climb to $10–$20+ depending on the country.

You’ve got two options for handling this cost:

• Build it into your price. Offer “free shipping" and bake the cost into the shirt price. Buyers love free shipping — it’s proven to boost conversion rates.
• Charge it separately. Show shipping at checkout. This keeps your listed price lower, but some buyers abandon cart when they see extra fees.

Either way, don’t guess. Calculate your average shipping cost per order and add it to your total cost before you set your price.

Transaction fees

A few smaller costs are easy to overlook, but they add up fast:

• Payment processing — usually 2.9% + $0.30 per transaction
• E-commerce platform subscription and transaction fees
• Website hosting, domain, and email service costs
• Packing materials per order

None of these feel huge on their own. Together, they chip away at your margin more than most sellers expect.

Other costs

Even after production, decorating, and shipping, there’s one more chunk of your budget most new sellers underestimate: everything it takes to actually get people to buy.

Here’s what typically falls into this bucket:

• Advertising — Facebook/Instagram ads, TikTok ads, Google Shopping, or influencer partnerships
• Design costs — if you’re not designing shirts yourself, artist fees or design tool subscriptions
• Software/apps — mockup generators, email marketing tools, inventory sync apps
• Returns and refunds — a small percentage of orders will need reprints or refunds, and that cost comes out of your margin

Advertising alone can range from $1–$5+ per sale depending on your niche, competition, and how well your ads convert. New sellers often spend more per sale while they’re still testing what works.

A good rule of thumb: budget 15–25% of your revenue for marketing and overhead until you have consistent, repeatable sales data. Once you know your numbers, you can dial that percentage up or down.

These “invisible" costs are exactly why gross profit and net profit can look so different — a shirt that looks like $20 profit on paper might really be $8 once ads and fees are counted in.

How to Price T-Shirts for Your Online Store

First, decide on an overarching pricing approach to inform your t-shirt rate setting when you sell shirts online. This will help you determine a strategy that aligns with your business model and target market.

Cost-Plus Pricing

This is the most straightforward pricing tactic. Tally up your t-shirt production costs, factor in operating expenses, then mark up the total by your desired profit margin.

For example:

• Blank t-shirt: $5
• Printing/embroidery: $2
• Labeling and packaging: $1
• Transaction fees: 5% of sale
• Shipping: $3
• Profit margin goal: 30%

Total expenses = $5 + $2 + $1 + $0.35 + $3 = $11.35

Sale price at 30% markup = $11.35 x 1.3 = $14.75

The upside of cost-plus is you are guaranteed to cover costs. The downside is it ignores market factors.

Value-Based Pricing

With value-based pricing, you set rates based on the perceived worth in the customer’s eyes rather than production expenses alone. This involves:

• Researching how much customers pay for similar t-shirt designs
• Surveying shoppers on pricing expectations
• Testing different price points to find the optimal balance of value versus turnover rate

If shoppers believe your shirts are worth $20 based on styling and quality, you can likely command that versus a lower cost-plus price even with higher margins. Perception is reality.

Competitive Pricing

Here you benchmark directly against rival t-shirt seller prices. The steps:

• Identify competitors selling comparable shirt designs and blanks
• Record their pricing across different styles and product groupings
• Average out the going rate for your niche
• Price above, below or on par with competitors

Matching prices is safe, but going lower or higher depends on your positioning.

Psychological Pricing

Psychological pricing uses buyer emotions and biases to drive sales, such as:

• Pricing just under even numbers like $9.99 not $10
• Flash sales and limited-time offers
• Free shipping or bonus gift incentives
• Bulk order discounts

The risk is conditioning buyers to only buy on discount.

How to Increase Your Custom T-Shirt Profit (Step-by-Step)

More sales don’t always mean more profit. If your costs are creeping up quietly, you can sell a lot of shirts and still barely break even. Here’s how to fix that, step by step.

1. Calculate Your Costs and Set a Margin Goal

Before you touch pricing or ads, know your numbers. Add up blank shirt cost, printing, packaging, and shipping for every order.

Once you know your true cost per shirt, set a margin goal. This number becomes your baseline for every pricing decision you make later.

2. Test Before You Commit to Bulk

Don’t guess your way into inventory. Test first, then scale what works.

Print on demand is the easiest way to do this. You upload a design, someone orders it, and it gets printed and shipped — no upfront stock, no risk. Merchize is one option here, with a wide range of custom t-shirt styles at solid prices.

Once a design proves itself, switch to small bulk batches. Ordering 20-50 units at once usually drops your per-unit cost by a good margin, even after you factor in storage.

One more thing: always order a sample before you sell. You can’t catch a sizing issue or a print flaw until you’ve held the shirt yourself. Better you find it than your customer does.

3. Trim Your Production Costs

If you print in-house, fewer choices can actually mean more profit. Stick to 2-3 core blank styles and colors. Every extra variant adds inventory to track and more ways for something to go wrong.

Next, shop your suppliers. Get quotes from 3-4 print providers instead of sticking with the first one you found. Blank cost, print cost, and shipping can vary a lot between vendors, even for similar quality.

For more complex prints — like all-over print t-shirts — an overseas supplier such as Merchize can be worth it. Shipping runs higher, but production cost is often low enough to offset that easily.

4. Cut Your Shipping Spend

Shipping eats into margin more than most sellers realize. A quick audit can save real money.

• Switch to lightweight poly mailers instead of boxes where possible
• Choose fulfillment centers closer to where your customers actually live
• Compare shipping rates across a few carriers instead of defaulting to one

Merchize, for example, lets sellers pick fulfillment locations across the US, UK, AU, and EU — which helps keep shipping costs down no matter where your customers are.

5. Raise Your Average Order Value

Getting someone to spend a little more per order is often cheaper than finding a new customer. A few ways to do it:

• Bundle discounts, like “buy 2, get 10% off" or matching family sets
• Upsells at checkout, such as a matching tote bag or mug
• A free shipping threshold set just above your average cart size

Bulk orders from businesses are another strong lever. Companies, schools, and event organizers often order 100-1,000 shirts at once for giveaways. Since your cost per unit drops at that volume, you can offer a discount and still profit well.

Here’s a simple example. Say you land a 300-shirt order at $7 production cost per shirt — that’s $2,100 total. Sell each shirt for $25, and you bring in $7,500. That’s $5,400 in profit from one order. A few deals like that each month adds up fast.

6. Set the Right Pricing Strategy

Price based on value, not just cost. Custom and personalized shirts can support higher margins than plain blanks — you’re not just selling a shirt, you’re selling the customization.

Test your pricing regularly, too. Try $24.99 versus $27.99 versus $29.99 on a bestseller and watch what happens. You might find customers are willing to pay more than you assumed.

A few things to weigh as you pick a strategy:

• Your market. Most t-shirt sellers land somewhere between 30-50% margin. Go lower if you’re competing on price, higher if your shirts have strong brand value or perceived quality.
• Your business model. Paid ads cost money, so you’ll need a bigger margin to cover them. If you’re growing through word of mouth or SEO, you can afford to run slimmer.
• Your goals. Chasing volume? Lower your margin and sell more. Building a premium brand? Price higher, sell less, and protect your profit per shirt.

Revisit your pricing every quarter. Costs shift, platform fees change, and your margins should keep up.

7. Make Your Marketing Actually Pay Off

Marketing only helps your profit if it’s efficient. A few channels worth knowing:

• SEO
• Social media (Instagram, TikTok, Pinterest)
• Paid ads (Facebook, Google)
• Influencer marketing and user-generated content
• Email and SMS

Retention is often cheaper than acquisition. Set up email and SMS flows for abandoned carts, post-purchase follow-ups, and win-backs — you’re converting traffic you already have instead of paying for new clicks every time.

Track cost per acquisition by channel, and be ready to cut what’s not working. Apparel margins are thin, so one underperforming channel can quietly erase your profit. If your net profit per shirt is low, check your pricing, switch to a cheaper blank, or lean more on organic channels like SEO.

Look at performance over time, not just per sale. A channel that sells more shirts but leaves you with lower profit isn’t actually the winner — move your budget to what’s genuinely working.

And don’t underestimate customer photos and reviews. A real person wearing your shirt often converts better than a paid photoshoot, and it costs you next to nothing.

8. Scale With a Plan

Growth should be intentional, not a gamble. A few ways to scale without burning cash:

• Reinvest steadily. Put early profits back into ads, influencer partnerships, or new designs — small and consistent beats one big bet.
• Expand your product range. Add hoodies, mugs, or bundles alongside your shirts. It raises your average order value and gives customers more reasons to come back.
• Try new print methods. Embroidery or sublimation can attract buyers who want a more premium look, even at a higher price point.
• Add new sales channels. Don’t rely on one platform. Marketplaces like Etsy or Amazon can bring in new customers — just compare fees carefully before you commit.

Before you scale, know your numbers: best sellers, average profit per order, return rate, and repeat-purchase rate. Those numbers tell you what’s actually worth scaling.

Profit in the t-shirt business isn’t about one big move — it’s a handful of small, steady improvements that stack up over time. Start with your costs, tighten your pricing, and the rest gets a lot easier.

Start Your Own custom t-shirt business with Merchize

Launching an online t-shirt shop is super easy with Merchize. You can get started even if you’re short on cash since zero money down is required upfront.

Merchize uses print-on-demand technology to print and ship your designs so you don’t have to worry about managing inventory or production. You only get charged when someone actually buys one of your sweet tees in your shop!

Designing your own tee graphics is a blast with Merchize’s Design Lab tools. It’s got awesome features like graphic elements, templates, and font options so you can be creative. Are you stuck on ideas? No problem, you can browse Merchize’s graphics database for inspiration.

Once your radical t-shirt designs are ready to roll, you can sell them on your own website or popular online stores like Etsy, eBay, Amazon, and more. Merchize lets you connect to a bunch of sales channels to expand your reach.

The best part is you set your own prices, so you control how much profit you make! If a t-shirt costs $15, you decide how much of that goes to you.

Merchize makes starting an online t-shirt shop simple and profitable. Sign up and upload your first tee design today to get paid for your awesome ideas!

FAQs

1. Is selling custom t-shirts profitable in 2026?

Yes. Selling custom t-shirts can still be very profitable in 2026 thanks to growing demand in personalized fashion, events, and company branding. Beginners may earn $500–$1,000 per month, while established sellers can scale to $10,000+ monthly.

2. How much does it cost to start a t-shirt business?

Starting a custom t-shirt business can cost as little as $0 with print-on-demand services, since you only pay when you sell. If you choose to handle your own inventory, the initial investment may range from $500–$2,000 for blanks, printing, and marketing.

3. What is the average profit per shirt?

On average, custom t-shirts generate $5–$15 profit per shirt, depending on production cost, selling price, and sales channel. POD sellers typically enjoy 30–70% profit margins per sale.