Worked example: a $26 Etsy t-shirt
A Bella+Canvas 3001 through a major POD provider costs about $12.50 printed on one side, plus $4.99 shipping to a US address. You sell it for $26 with free shipping. Etsy takes roughly $2.86 in blended fees (about 11% of the $26). That leaves $26 − $2.86 − $12.50 − $4.99 = $5.65 profit, a 21.7% margin. Run any ads at all and you are close to break-even: your maximum ad cost per order is $5.65, which on a 2% conversion rate means you cannot pay more than about $0.11 per click.
- • Raising the price to $32 lifts profit to $10.79 — nearly double — because every cost except the 11% fee is fixed.
- • A second print location adds roughly $3–6 to base cost and rarely adds enough perceived value to cover it.
- • Bundles and multi-item orders are the cheapest margin win in POD: the second unit usually ships for $2–3 rather than $4.99.
Why $20 print-on-demand tees do not work
At a $12.50 base and $4.99 shipping, a $20 tee nets about $0.30 after marketplace fees. Sellers who appear to succeed at that price are usually on volume pricing tiers, printing in-house, or charging shipping separately. If you are starting out, anchor apparel at $26–34, mugs at $17–22, and wall art at $30–50 — those are the ranges where the numbers survive a return or two.
The ad math that decides whether you can scale
Your contribution margin per order is the entire budget available for customer acquisition. With $5.65 of contribution, a 3× ROAS target is impossible on a single purchase — you need repeat orders or higher AOV. Compute break-even ROAS as retail ÷ contribution margin: on the $26 tee that is 4.6×, which very few cold-traffic campaigns hit. Sellers who scale POD profitably almost always sell $40+ items or bundle.
- • Break-even ROAS = retail price ÷ profit before ads. Below that number, every ad dollar loses money.
- • Organic marketplace traffic (Etsy search, Pinterest, TikTok) is the standard path for POD precisely because the margins cannot fund paid CAC on low-ticket items.
- • Factor 2–5% of orders as reprints or refunds — providers charge you again for most misprints caused by your artwork file.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
Amazon FBA Fees Explained: A Sellers' Guide to Real Unit Economics in 2026
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Read the guideAmazon FBA Profit Guide 2026: Real Margins After Referral, FBA Fees, PPC, and Returns
Why Seller Central's calculator under-reports your true cost, the 30% ROI rule aggregators use, and the levers that actually move FBA margin.
Read the guideFAQ
What is a good profit margin for print on demand?
20–35% net is normal for apparel through Printful/Printify-class providers, and 40–60% is achievable on paper goods, wall art, and digital-adjacent products. Anything under 20% cannot absorb ads, returns, or a base-cost increase.
How much profit is on a $25 t-shirt?
Roughly $4–7 after a $12–13 base cost, $5 shipping, and marketplace fees — assuming you offer free shipping and run no ads. The same shirt at $32 nets $11–13, which is why POD pricing advice always pushes you above $28.
Should I charge shipping separately or build it into the price?
On Etsy, free shipping over $35 improves search placement, so building it in usually wins there. On your own Shopify store, charging shipping separately typically converts slightly worse but protects margin on low-ticket items. Model both in this calculator with the shipping-charged input.
Is Printify or Printful cheaper?
Printify usually has lower base costs because it routes to third-party print shops; Printful runs its own facilities with more consistent quality and slightly higher prices. Model your actual provider quote — a $2 base-cost difference is 8% of margin on a $26 tee.
How many POD sales do I need to make $1,000 a month?
At $5.65 profit per order (a $26 tee on Etsy) you need about 177 orders. At $12 profit (a $40 item) you need 84. That gap is the entire argument for raising your prices instead of chasing volume.
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