Digital & Online

Print-on-Demand Profit Margins: How Much You Really Make per Sale

How much print-on-demand sellers make per shirt, mug and hoodie after Etsy or Shopify fees, shipping and ads, with worked examples and a 2026 pricing formula.

Print on demand looks like free money from the outside: no inventory, a $27 shirt, a $12 base cost. Then the fees arrive. Platform fees, payment processing, shipping, ads, refunds and occasional reprints can turn a "$15 profit" into $3. This guide shows the real math with 2026 figures so you can price for profit from day one. Verify current fees with each platform, because they change.

The profit formula

Profit per order = what the customer pays − (base cost + provider shipping + platform fees + payment fees + ad cost per order + refunds allowance)

The fees that apply on Etsy (US sellers, as of 2026)

FeeAmount
Listing fee$0.20 per listing, renewed every 4 months and charged again when an item sells
Transaction fee6.5 percent of item price plus shipping and gift wrap charged
Payment processing (Etsy Payments, US)3 percent + $0.25 per order
Offsite Ads (only on attributed sales)15 percent of the order, or 12 percent for shops above $10,000 in annual sales
Etsy Ads (optional)Whatever you spend

Worked example 1: T-shirt on Etsy, free shipping

Price $26.99, free shipping. Base cost $11.50 and provider shipping $4.75 (typical 2026 range for a popular cotton tee; check your provider).

LineAmount
Revenue$26.99
Base cost−$11.50
Provider shipping−$4.75
Listing fee−$0.20
Transaction fee (6.5%)−$1.75
Payment processing (3% + $0.25)−$1.06
Profit before ads$7.73 (about 29%)
If the sale came from Offsite Ads (15%)−$4.05
Profit after Offsite Ads fee$3.68

Worked example 2: the same design on a hoodie

Price $49.99, free shipping. Base cost $24.00, provider shipping $8.00.

LineAmount
Revenue$49.99
Base cost and shipping−$32.00
Listing fee−$0.20
Transaction fee (6.5%)−$3.25
Payment processing (3% + $0.25)−$1.75
Profit before ads$12.79 (about 26%)

The margin percentage is similar, but the dollar profit is much higher. Higher-priced products are often easier to make worthwhile.

Worked example 3: mug

Price $19.99 plus $5.99 shipping charged. Base cost $7.00, provider shipping $6.50.

LineAmount
Revenue (item plus shipping charged)$25.98
Base cost and shipping−$13.50
Listing fee−$0.20
Transaction fee (6.5% of $25.98)−$1.69
Payment processing (3% of $25.98 + $0.25)−$1.03
Profit before ads$9.56

Mugs often have good margins because base costs are low, but breakage claims can be higher, so budget for replacements.

On your own Shopify store

Your own store avoids marketplace fees but has no built-in traffic.

LineT-shirt
Revenue: $26.99 + $4.99 shipping charged$31.98
Base cost and shipping−$16.25
Card processing (about 2.9% + $0.30; verify your plan)−$1.23
Profit before ads$14.50
Ad cost per purchase (example)−$12.00
Profit after ads$2.50

Use this check before running ads:

Break-even ROAS = average order value ÷ profit per order before ads

At an order value of $31.98 and profit of $14.50, break-even ROAS is about 2.2. You need $2.20 in sales per $1 of ad spend just to break even.

How to raise your margins

LeverEffect
Bundles ("2 for $45", family sets)Raises order value; ad and fixed fees are spread across more items
Personalisation (names, dates, pets)Supports prices 20 to 50 percent higher
Premium tiers (heavyweight tees, embroidery)Higher price gap than cost gap
Free shipping thresholds just above a single itemEncourages a second item
Provider paid plansDiscounts on base cost once volume justifies the fee
Choosing the right provider per productBase costs differ by provider and print location

Paid plan break-even:

Orders per month to break even = plan fee ÷ savings per item

Example: a $39 monthly plan saving $2.20 per shirt pays for itself at about 18 shirts a month.

Etsy vs own store at a glance

FactorEtsyOwn Shopify store
Fees per $27 shirt saleAbout $3.00, plus Offsite Ads on some salesAbout $1.20 in card processing, plus a monthly plan fee
TrafficBuilt-in buyer searchYou must bring it (social, email, ads)
Customer data and repeat salesLimitedFull email list and remarketing
Best useTesting designs and capturing gift searchesBuilding a brand once designs are proven

Many sellers start on Etsy to find winning designs, then add their own store to build repeat customers.

Pricing worksheet

ProductBase + shippingTarget priceFees at that priceProfit before adsMargin
T-shirt
Hoodie
Mug
Poster

Targets many sellers use:

  • At least 30 to 40 percent profit before ads on marketplace sales
  • At least $6 to $8 profit per T-shirt, more for higher-priced items
  • A refund and reprint allowance of 2 to 5 percent of revenue
  • A known break-even ROAS before any paid ads

Hidden costs that shrink margins

The worked examples cover the obvious costs. These smaller ones add up:

  • Samples. Every new product or provider needs a sample order, typically $10 to $35 each with shipping.
  • Listing renewals. On Etsy, each listing renews every four months for $0.20 whether or not it sells. A shop with 300 listings spends about $180 a year on renewals alone.
  • Software. Mockup tools, design software, fonts and graphics licenses, and email marketing can run $20 to $100 a month.
  • Refunds and goodwill reprints. Wrong sizes, lost parcels and unhappy customers cost 2 to 5 percent of revenue for many shops.
  • Sales tax on your provider bill. Some providers charge you sales tax on base costs for shipments to certain states unless you submit a resale or exemption certificate.
  • Currency and international shipping. International orders often have higher shipping costs and longer delivery times, which can increase refunds.

Add these to a monthly view of your business, not just to individual orders, so you know your true net profit.

Is it worth it?

At $7 profit per shirt, 300 shirt sales a month produces about $2,100 before ads, software and taxes. That is achievable for shops with a strong niche and many listings, but it is not passive. The sellers who do best treat their shop as a design and marketing business, find a small set of designs that sell well, expand those designs across products, and build repeat customers through email.

Your next step

Pick your three main products, look up your provider's live base cost and shipping for each, and fill in the worksheet at your intended prices. If profit before ads is under about $6 on a shirt, raise the price, change the blank, or add a bundle.

The full guide, Starting a Print-on-Demand Business, covers niche validation, Printful and Printify comparisons, copyright and trademark safety, Etsy SEO, sales tax, personalisation and bundles, marketing and a 30/60/90-day launch plan, for $0.99.

General information only, not legal, tax or financial advice. Rules and costs vary by state and change; verify with official sources. Read the disclaimer.

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