Job Costing for Screen Printers: Track True Profit Per Order

You printed 500 shirts last week. The invoice said $2,400. You felt good about it.

But did you actually make money?

Most screen printing shops don't know. They price based on gut feeling, competitor rates, or what "feels right." Then they wonder why margins compress, why some jobs feel unprofitable, or why growth doesn't translate to more cash in the bank.

Job costing is the antidote. It's the practice of tracking every direct and indirect cost tied to a specific order—and it transforms you from a printer running blind to a business owner running with data.

Let's walk through what it is, why it matters, and how to implement it in your shop.

What Is Job Costing (And Why Screen Printers Need It)

Job costing is the process of calculating the total cost to produce a specific order, then comparing that to revenue to determine actual profit.

For screen printers, this includes:

• Direct materials: garments, ink, screen mesh, emulsion, cleanup chemicals
• Direct labor: press operator time, hand-finishing, quality control
• Setup costs: screen preparation, screen burn time, color matching, press setup
• Equipment overhead: depreciation, maintenance, electricity for dryers and flash units
• Indirect labor: design time, customer service, order administration

Without job costing, you're pricing in a vacuum. You might be:

• Underpricing complex jobs that require hand-separation, custom color mixing, or extensive setup
• Overpricing simple jobs and losing orders to competitors
• Missing the true cost of rush orders (expedited labor, overtime, setup inefficiency)
• Not accounting for inefficiency waste—screen reclamation failures, ink loss, garment damage during production

The result: you feel busy but not profitable.

The Three Layers of Screen Printing Costs

To build an accurate job costing system, you need to understand how costs stack up.

1. Variable Costs (Scale With Volume)

These change based on quantity and job complexity:

• Garment cost: wholesale price per unit (size-dependent)
• Ink usage: per-color, per-garment consumption (thicker coverage = more cost)
• Screen materials: mesh, emulsion, haze remover, reclamation chemistry
• Printing labor: operator time per garment (speed varies by design complexity)
• Quality control labor: inspection, rework, packing

Example: A 100-piece 1-color job on a basic tee costs less per unit to print than a 50-piece 6-color job on premium blanks.

2. Setup Costs (Fixed Per Job, Not Per Garment)

These occur once per order, regardless of quantity:

• Screen burn time: photographic emulsion exposure (5–15 minutes per screen)
• Design labor: separations, revisions, digital file prep (30 minutes to 2+ hours)
• Screen reclamation: removing previous artwork (10–20 minutes per screen)
• Press setup: registration, color mixing, test prints (15–30 minutes)
• Sample approval: proofs, customer communications

The cost-per-unit impact matters: A 50-piece job has the same $15–25 setup cost as a 500-piece job. That setup cost is 3–10% of a small order's total, but only 0.3–1% of a large order. This is why minimums exist.

3. Overhead Allocation (Shared Shop Costs)

These don't tie directly to one job, but they need to be recovered across all jobs:

• Equipment depreciation: dryers, flash units, presses, washout stations
• Utilities: electricity for 24/7 equipment, water, compressed air
• Facility rent: square footage, insurance, property taxes
• Indirect labor: owner time, accounting, administrative staff
• Maintenance & repairs: screen replacement, press alignment, dryer belts

A healthy overhead recovery is 40–60% of direct labor costs for most shops. (Your accountant or bookkeeper can calculate your actual overhead by dividing annual fixed costs by annual direct labor hours.)

How to Calculate Job Cost: The Formula

Total Job Cost = Setup Costs + Material Costs + Labor Costs + Overhead Allocation

Profit = Revenue – Total Job Cost

Profit Margin % = (Profit ÷ Revenue) × 100

Real Example: 100-Piece, 1-Color Tee Order

Costs:

• Garments (Gildan 5000): 100 × $2.50 = $250
• Ink (1-color, light discharge): 100 garments × 0.15 oz per garment × $0.08/oz = $1.20
• Screen (1): mesh + emulsion + chemicals = $8
• Screen burn time: 12 min at $25/hr = $5
• Press setup & test prints: 20 min at $25/hr = $8.33
• Printing labor: 100 garments at 1.5 min/garment ÷ 60 min/hr × $22/hr = $55
• QC & packing: 20 min at $20/hr = $6.67
• Subtotal Direct Costs: $334.20
• Overhead (50% of labor): $35.50 × 0.50 = $17.75
• Total Job Cost: $351.95

If you quoted $400:

• Profit: $48.05
• Profit Margin: 12% (healthy for this volume)

If you quoted $350:

• Profit: –$1.95
• You actually lose money.

This is why tracking job costs matters. A $50 difference in quoting approach just made this order unprofitable.

Building a Job Costing System in Your Shop

You don't need complex accounting software to start (though it helps). Begin with these steps:

Step 1: Document Your Rates

Calculate (or estimate) the true cost of:

• Hourly labor rates by role (press operator, design, QC)
• Overhead burden (annual fixed costs ÷ annual billable hours)
• Machine time costs (depreciation + maintenance per hour)
• Garment cost sheets by supplier and style
• Ink cost per ounce by type and color

Step 2: Time Your Common Tasks

For one week, track how long typical jobs take:

• Single-color print on one size: _____ min
• Multi-color job: _____ min per color
• Screen burn: _____ min
• Design separation: _____ min
• Press setup: _____ min

Average these times—they'll become your baseline estimates.

Step 3: Create a Job Cost Template

Build a simple spreadsheet (or use built-in tools in management software like Kontraktr) that captures:

Item	Unit Cost	Quantity	Total
Garment	$2.50	100	$250
Ink (color 1)	$0.08/oz	2 oz	$0.16
Screen	$8	1	$8
Design labor (min)	$0.42	45	$18.90
Screen burn (min)	$0.42	12	$5.04
Print labor (min)	$0.37	150	$55
QC labor (min)	$0.33	20	$6.67
Subtotal			$343.77
Overhead (50% labor)			$17.19
TOTAL JOB COST			$360.96

Step 4: Compare Cost to Quote

Before you quote, calculate job cost. Price based on:

• Minimum margin: 15–20% for routine jobs
• Complexity markup: +5–10% for custom separations, hand-finishing, or rush timelines
• Volume discount: reduce margin on orders 500+

If cost is $361 and you want 20% margin:

• Target price: $361 ÷ 0.80 = $451.25

Don't quote lower unless you have strategic reasons (new customer, capacity filler, market research).

Step 5: Track Actual vs. Estimated Costs

After you complete a job:

• Record actual labor hours spent
• Note any material waste or rework
• Compare to your estimate
• Adjust future estimates based on what you learn

Over time, your estimates get more accurate—and your pricing gets sharper.

Common Job Costing Mistakes Screen Printers Make

Forgetting setup costs in low-volume quotes. A 25-piece order has the same screen burn as a 250-piece order. Price accordingly.

Underestimating design labor. Custom separations take time. Don't bundle it into print labor.

Not allocating overhead. If you don't recover overhead in each job, you'll go broke despite printing "profitably."

Ignoring waste. Most shops have 2–5% material loss (ink spill, screen failures, garment damage). Build this in.

Pricing based on time instead of value. A 6-color job on premium blanks commands different pricing than a 1-color basics job—even if print time is similar.

The Bottom Line

Job costing transforms screen printing from an art form into a real business. You stop guessing. You stop leaving money on the table. You price confidently, knowing every order is profitable before you start.

Start small: pick your next 10 orders and calculate actual job cost after completion. Compare your estimates to reality. Adjust. Repeat.

Within a month, you'll have data to price smarter. Within a quarter, you'll wonder how you ever managed without it.

Your move: Build your first job cost sheet this week. Include setup, materials, labor, and overhead. Then use it to quote your next three orders. Track actual costs, and see where your estimates were right—and where they missed.

Profitable printing starts with knowing what things actually cost.