T-Shirt Printing Break-Even: About $204K Monthly Revenue

Fixed costs $5.1K/mo Shop overhead

Contribution margin 80.1% After variable costs

Break-even revenue $6.4K/mo Revenue target

Break-even timing Month 1 Launch month

Break-even calculator

Test monthly revenue, variable expenses, and fixed costs to see when this T-shirt printing business clears break-even.

Lean Base Full

Monthly revenue Revenue is the money available to cover direct costs and overhead. $ Slow sales Peak sales Variable expenses These are direct costs that rise as orders and output rise. $ Light costs Heavy costs

Money available to cover fixed costs $144,008 $176,667 revenue - $32,659 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base contribution margin must cover. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which costs are fixed and which rise with sales in a custom apparel printing shop?

Cost classification

Break-even is only useful if per-order costs stay out of fixed overhead. Contribution margin, meaning sales less variable costs, changes fast when blanks, ink, shipping, and transaction fees are modeled correctly.

Expense	Cost	Break-Even Treatment	Common Mistake
T-shirt direct inputs	Variable	Apply $8.25 per unit: $5.00 blank, $1.00 ink, $1.50 print labor, $0.25 setup, and $0.50 packaging.	Blending these into monthly overhead and overstating contribution margin.
Hoodie direct inputs	Variable	Apply $18.00 per hoodie sold across blank apparel, ink, print labor, setup, and packaging.	Using the lower T-shirt input rate for higher-cost hoodie orders.
Product production overhead	Variable	Apply 0.6% of revenue for each active apparel line for overhead, indirect materials, maintenance, production utilities, and quality assurance.	Ignoring small percentage loads because each line item looks minor.
Shipping & fulfillment fees	Variable	Use 3.0% of first-year revenue, then the scheduled rate decline in later model years.	Treating fulfillment as a flat monthly bill when it moves with shipped orders.
E-commerce transaction fees	Variable	Use 1.5% of first-year revenue, then the scheduled rate decline in later model years.	Leaving fees below the gross margin line and overstating order profit.
Shop overhead bundle	Fixed	Include $5,100 per month for rent, utilities, platform base fees, software, insurance, accounting, admin, and fixed marketing.	Treating launch equipment purchases as monthly break-even expenses instead of separate cash needs.
Payroll capacity steps	Semi-fixed	Add salaries when staffing steps up, such as designers, print operators, marketing, support, and fulfillment roles by FTE plan.	Treating all payroll like direct labor already captured in unit inputs.

How does break-even change from a lean launch to a full production mix?

Scenario table

Break-even climbs as the shop adds products and payroll, but margin coverage also improves. The lean launch clears overhead at about $20.4k a month, while the full mix needs about $56.7k a month.

Planning assumptions only; actual break-even moves with mix, pricing, labor, and overhead.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch mix	$66.7k	$13.3k	$16.4k	80.1%	$37.0k	$20.4k break-even keeps a small launch viable.
Base growth mix	$176.7k	$33.7k	$33.9k	80.9%	$109.1k	$41.8k break-even rises, but the cushion is much wider.
Full scale mix	$331.7k	$59.5k	$46.6k	82.1%	$225.7k	$56.7k break-even is higher, yet margin coverage improves.

What breaks the break-even plan for a custom T-shirt shop?

Stress test

Year 1 revenue is about $66,700 a month versus about $20,400 break-even, so the plan starts with roughly $46,300 of cushion. The main break points are blank apparel inflation, rush labor, and fixed overhead that grows before repeat orders settle out.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$20,400	$46,300 cushion	First-year cushion is strong.
Revenue shortfall	Monthly revenue slips to the break-even line.	$20,400	$0 gap	Any deeper drop turns monthly profit into loss.
Fixed-cost increase	Monthly overhead rises by $1,000.	$21,650	$45,000 cushion	More rent or payroll tightens the cushion fast.
Margin pressure	Contribution margin falls by 1 point.	$20,700	$46,000 cushion	Small input-cost slips raise the floor quickly.
Combined pressure	Overhead rises by $1,000 and margin falls by 1 point.	$21,900	$44,800 cushion	Two small hits still leave room, but the slack shrinks.

What should you verify before you sign the lease and buy print equipment?

Founder checklist

Don't sign the lease or buy equipment until order flow can cover the $16.35K monthly fixed base and the $95K launch build. The model works only if real demand shows up fast enough to absorb 12,000 Year 1 garments.

1Order Pipeline12,000 units

Verify you have enough paid orders or signed quotes to fill 12,000 Year 1 garments before you lock in rent or the $95K launch build.

2Fixed Base$16.35K/mo

Check that the $16,350 monthly fixed base, including $2,500 rent, is covered by the first wave of orders.

3Unit Margin80.1% CM

Verify your selling prices still leave about 80.1% contribution after direct print inputs and 4.5% in shipping and transaction fees.

4Blank Supply12,000 units

Confirm blanks, ink, and packaging can support 12,000 Year 1 garments without rush buys, stockouts, or spoilage.

5Staffing Ramp2.0 FTE

Make sure the opening team can keep turnaround tight before Month 13 adds marketing and support payroll.

6Cash Buffer$1.181M

Keep this reserve for ramp-up, reprints, spoilage, and inventory timing so short delays do not break the plan.