How to Price DTF Shirts: Cost and Margin Worksheet

Price a DTF shirt from the cost of delivering a saleable garment, not from the transfer price alone. Include the blank, transfer, labor, order setup, packaging, expected waste and selling fees before deciding whether a quote supports your business.

The numbers below are invented planning examples in US dollars. They are not supplier quotes, market averages, tax advice or a promise of profit. Replace every input with your own records.

Build the cost of a saleable shirt

For the labor calculation: 3 ÷ 60 × $24 = $1.20. Include loading, positioning, peeling, checking and packing time where relevant; dwell time on the press is only part of the job. Owner time is still a cost even when no hourly wage is withdrawn.

Allocate setup across the actual order quantity

If preparing an order costs $18 in labor, that is $1.50 per shirt for 12 shirts and $0.75 for 24. Reorders may require less work, but verify the file, colors, blanks and quantity before removing the setup allowance.

For gang sheets, divide the delivered sheet cost by the number of usable transfers, not the number of theoretical spaces. The gang sheet layout and cost guide explains how usable capacity changes with margins and spacing. Keep unused logos in inventory rather than assuming they are already sold.

Calculate a price when selling fees are a percentage

Let C be direct cost per shirt, F the fixed selling fee allocated per shirt, r the percentage selling fee expressed as a decimal, and m your target contribution margin. Then:

Price = (C + F) ÷ (1 − r − m).

The denominator must be positive. This model assumes the percentage fee applies to the shirt selling price and the target is measured against that same price. If a platform also charges on shipping or tax, model those charges separately.

With C = $8.70, F = $0.30, r = 0.03 and m = 0.40, the result is $9.00 ÷ 0.57 = $15.789..., or $15.79 rounded. At $15.79, a 3% fee is about $0.47. After $8.70 direct cost and the $0.30 fixed allocation, about $6.32 remains before fixed overhead and tax.

Margin is different from markup

Without selling fees, an $8 cost marked up by 50% becomes a $12 price. The $4 difference is 33.3% of the selling price, not a 50% margin. A 50% margin on that same $8 cost would require a $16 price. Always name which measure a worksheet uses.

Check whether the order covers overhead

Contribution is the amount available to cover rent, software, insurance, equipment and other fixed expenses before business profit. It is not automatically take-home income. At an illustrative $6 contribution per shirt, $1,200 of monthly fixed costs would require 200 shirts just to cover those costs, assuming the same product mix and no other changes.

Separate unusual jobs: multiple print positions, personalized names, sorting by employee, rush delivery and customer-supplied blanks can add handling or risk. Quote their real workload instead of hiding it inside an unexplained price increase.

Before sending a quote

• Confirm garment model, color and size breakdown.
• Approve the number, dimensions and locations of prints.
• Include the setup and fulfillment work the order needs.
• State whether delivery, tax and revisions are included.
• Check the price using your actual payment-channel fees.
• Compare estimated labor and waste with the completed job afterward.

Should every quantity receive a discount?

Only when the order reduces your cost or you deliberately accept a lower contribution. Setup allocation can fall with quantity while per-shirt handling remains. Calculate the revised quote rather than applying a discount simply because the customer asks for more shirts.