Choose selling price, maximum production cost, markup or gross margin. Enter the required values, or use the clearly labeled historical example cost presets. Markup is a percentage of cost; gross margin is a percentage of selling price.

Include labor, packaging and overhead in your own cost.

Related Calculators

T-Shirt Pricing Formula

The original formula below calculates price using markup on production cost. For gross margin m%, use price = cost ÷ (1 − m/100), with m below 100% for positive cost.

TSP = TC × (1 + MU / 100)

Variables:

  • TSP is the T-Shirt Pricing ($)
  • TC is the total cost to produce a t-shirt ($) 
  • MU is the desired markup on cost (%)

For markup pricing, multiply cost by one plus markup divided by 100. For gross-margin pricing, divide cost by one minus margin divided by 100. Selling prices round up to cents; maximum production costs round down.

How to Calculate T-Shirt Pricing?

The following steps outline how to calculate the T-Shirt Pricing.

  1. First, determine the total cost to produce a t-shirt ($). 
  2. Next, choose markup on cost or gross margin on selling price and enter the target percentage.
  3. Use TSP = TC × (1 + MU/100) for markup, or TSP = TC ÷ (1 − m/100) for gross margin.
  4. Finally, calculate the T-Shirt Pricing.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

total cost to produce a t-shirt ($) = 5

desired markup on cost (%) = 20

TSP = $5 × (1 + 20/100) = $6. A 20% gross margin instead requires $6.25.