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My chest is 35.5 inches. This shirt is...
My chest is 35.5 inches. This shirt is 100% cotton. Will it shrink to the point where i should buy a medium. My height is 5'5''
To avoid shrinking altogether you should just air-dry your shirts without the use of a dryer.
Cotton shirts conventionally shrink ~%5 after a wash and dry cycle. If you're definitely going to use a dryer, I would play it safe with a medium. Otherwise, just get a small and air-dry.