Chartered Financial Analyst specializing in e-commerce and retail merchandising.
Find out how many t-shirts you need to sell to cover your costs. Enter any three variables—Monthly Fixed Costs, Avg. Price per Shirt, Avg. Cost per Shirt, or Breakeven Shirts—to solve for the fourth.
T-Shirt Business Breakeven Calculator
T-Shirt Business Breakeven Formula
The breakeven formula for a t-shirt business finds the number of shirts (Q) you must sell each month for total revenue to equal all fixed and variable costs.
Q = F / (P – V)
Solve for Monthly Fixed Costs (F):
F = Q * (P – V)
Solve for Avg. Price per Shirt (P):
P = (F / Q) + V
Solve for Avg. Cost per Shirt (V):
V = P – (F / Q)
Variables Explained
- Monthly Fixed Costs (F): Your total, recurring monthly overhead (e.g., Shopify/Etsy fees, design software, marketing, web hosting).
- Avg. Price per Shirt (P): The average retail price you sell one t-shirt for.
- Avg. Cost per Shirt (V): The average cost of one t-shirt. This includes the blank shirt, printing/embroidery, packaging, shipping, and transaction fees.
- Breakeven Shirts (Q): The total number of t-shirts you need to sell to reach $0 in monthly profit.
Related Calculators
- Print on Demand Breakeven Calculator
- E-commerce Breakeven Calculator
- Retail Breakeven Calculator
- Boutique Breakeven Calculator
What is a T-Shirt Business Breakeven Point?
A **T-Shirt Business Breakeven Point** is the exact number of shirts (Q) you must sell per month to cover all your business expenses. This is the critical number you need to hit before your t-shirt business starts making a profit.
**Fixed Costs (F)** are your monthly overhead. You pay these costs even if you sell zero shirts. This includes your e-commerce platform fees (like Shopify), design software (like Adobe Illustrator), any marketing budget, and website hosting.
**Variable Costs (V)** are the costs tied *directly* to each shirt you sell. This is the “cost of goods sold” for one shirt. It includes the blank t-shirt, the cost of printing or embroidery, packaging materials, shipping, and any per-sale transaction fees (like from Stripe or PayPal).
The **Contribution Margin** (P – V) is the profit from a single t-shirt that goes toward paying off your monthly fixed costs. If you sell a shirt for $25 (P) and your total cost for that shirt (blank, printing, shipping, fees) is $10 (V), your contribution margin is $15. This calculator finds how many $15 “profit chunks” you need to cover your total fixed costs.
How to Calculate T-Shirt Business Breakeven (Example)
Let’s calculate the breakeven point for a small online t-shirt shop.
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Identify Monthly Fixed Costs (F):
Your Shopify plan is $30/mo, design software is $20/mo, and marketing is $100/mo. Your (F) is $150.
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Identify Avg. Price per Shirt (P):
You sell each t-shirt for $25.
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Identify Avg. Cost per Shirt (V):
The blank shirt costs $5, printing is $3, and shipping/packaging/fees are $2. Your (V) is $10.
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin per shirt: $25 (P) – $10 (V) = $15.
Next, divide the fixed costs by this margin:
Q = $150 / $15 = 10 -
Conclusion:
You must sell 10 t-shirts each month to cover all your costs and start making a profit.
Frequently Asked Questions (FAQ)
This calculator works for both. For POD, your **Variable Cost (V)** is the all-in price your supplier (like Printful or Printify) charges you. For holding inventory, (V) is your cost for the blank shirt + printing, but your **Fixed Cost (F)** might be higher due to storage or a larger upfront inventory purchase (which you should amortize monthly).
Flat *monthly* fees (like your Shopify plan) are a **Fixed Cost (F)**. Fees charged *per-sale* (like transaction fees or payment processing) are part of your **Variable Cost (V)**.
Yes. If you offer “free shipping,” the shipping cost is a **Variable Cost (V)**. If you charge the customer for shipping, you can either add the shipping revenue to (P) and shipping cost to (V), or ignore both if they cancel each other out.
Enter your (F) (e.g., $150), (V) (e.g., $10), and your target sales goal (Q) (e.g., 20 shirts/mo). Solve for (P): `P = ($150 / 20) + $10 = $7.50 + $10 = $17.50`. Your price must be at least $17.50 to break even if you sell 20 shirts per month.