I’ve created a financial calculator that follows a common formula used by small apparel businesses. Here’s how to use it and what percentages I recommend setting aside:

1. Direct Costs (Cost of Goods Sold):
   • Your actual cost per shirt (materials, printing, blank shirt cost)
   • This is subtracted directly from revenue
2. Operational Costs (as % of revenue):
   • Marketing/Advertising: 15%
   • Shipping: 10%
   • Website/Tech: 5%
   • General Overhead: 10%
   • Tax Reserve: 25%

This leaves approximately 35% gross margin before accounting for your direct costs. The calculator will help you determine your actual net profit after all expenses.

Some key recommendations:

• Always maintain a 3-month emergency fund covering all expenses
• Reinvest 20-30% of profits back into the business during the first year
• Track your actual expenses for 3 months and adjust these percentages based on your specific situation

I’ve designed a two-sheet Excel workbook for your t-shirt business:

1. The first sheet “Monthly Sales & Costs” has:
   • Input section for your key variables
   • Automated calculations for revenue and costs
   • Breakdown of operational costs as percentages
   • Profit analysis and emergency fund target
2. The second sheet “Annual Tracking” allows you to:
   • Track performance month by month
   • Calculate annual totals
   • Monitor trends in profit margins
   • Compare performance across months

Key features:

• All calculations are formula-linked
• Color coding for easy data entry
• Conditional formatting to highlight profit margins
• Automatic calculation of emergency fund targets

To use this spreadsheet:

1. Enter your basic values in the yellow input cells
2. Monthly calculations will update automatically
3. Copy the monthly results to the annual tracking sheet
4. Monitor your trends and adjust percentages as needed