Profit Margin Calculator
Real profit per order after GST, fees, shipping and returns.
GST registered?
Excluding GST if you claim input tax credit.
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Usually return shipping plus forward shipping and packing.
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Your result
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Enter your numbers to see the result.
This profit margin calculator is built for online sellers. Enter your selling price, GST rate and product cost, then add marketplace commission, fixed fees, shipping, packing, ads and your return rate. It shows your real profit per order, net margin, gross margin, and the selling price you would need for a target margin.
What is a Profit Margin Calculator?
Profit margin is the share of revenue you keep as profit. For online sellers, the gap between the price a customer pays and what you keep is large: GST, marketplace commission and fees, shipping, packing, advertising and the cost of returns all come out before profit.
Many new sellers look only at product cost and selling price and are surprised when bank deposits are lower than expected. A profit margin calculator that includes every cost per order shows the real picture and the price you need for a healthy margin.
How does the Profit Margin Calculator work?
For GST-registered sellers, the calculator removes GST from the selling price to get net revenue. It then subtracts product cost, commission (as a percentage of the selling price), fixed fees, shipping, packing, ads and the average cost of returns.
Net margin is profit divided by net revenue. The target price is solved directly from the margin you want.
How to use the Profit Margin Calculator step by step
- Enter the selling price including GST and choose the GST rate.
- Say whether you are GST registered.
- Enter your product cost.
- Add commission, fees, shipping, packing and ads.
- Enter your return rate and loss per return.
- Read profit per order, margins and the price for your target margin.
Profit Margin Calculator example with real numbers
You sell kurtis online at ₹799 including 5% GST. Each costs you ₹400. The platform charges no commission but there is a ₹20 fee, ₹70 shipping, ₹12 packing and about ₹30 of ads per order, and 10% of orders come back, costing ₹140 each.
| Example input | Value |
|---|---|
| Selling price | ₹799 incl. 5% GST |
| Product cost | ₹400 |
| Commission | 0% |
| Fees + shipping + packing + ads | ₹132 |
| Return rate | 10%, ₹140 per return |
| Example output | Value |
|---|---|
| Net profit per order | ₹214.95 |
| Net revenue (after GST) | ₹760.95 |
| GST to pay | ₹38.05 |
| Product cost | ₹400.00 |
| Commission | ₹0.00 |
| Fees, shipping, packing, ads | ₹132.00 |
| Returns cost (spread per order) | ₹14.00 |
| Net margin | 28.2% |
| Gross margin (before fees) | 47.4% |
| Price for 20% net margin | ₹716.63 |
The profit margin calculator shows a net profit of ₹214.95 per order. GST takes ₹38.05, and returns cost ₹14.00 per order on average. Your margin is already above 20%; the lowest price that would still give a 20% net margin is about ₹716.63, which shows how much room you have for discounts.
Key features of this Profit Margin Calculator
- GST removed correctly for registered sellers
- Marketplace commission and fixed fees
- Shipping, packing and ad costs
- Return/RTO cost averaged per order
- Price for a target net margin
Who should use the Profit Margin Calculator?
Who is this Profit Margin Calculator for?
- Sellers on Meesho, Amazon, Flipkart and other marketplaces
- D2C brands selling through their own sites
- Resellers and small manufacturers
- New sellers pricing their first products
Practical use cases
- Checking real profit on a ₹799 product
- Setting a price for a 20% net margin
- Seeing how a higher return rate hurts profit
- Comparing two marketplaces’ fee structures
Key benefits
- True profit: every cost per order included.
- Platform-neutral: enter any marketplace’s fees.
- Pricing help: target-margin price calculated.
- GST-aware: registered and unregistered sellers.
Tips for better results
- Check each platform’s current fee schedule; fees change often.
- Reduce returns with accurate size charts and photos; each return costs twice the shipping.
- Claim input tax credit on purchases and fees if you are registered.
- Track ad cost per order, not just total ad spend.
Common mistakes to avoid
- Calculating margin on the GST-inclusive price.
- Ignoring returns and RTO.
- Forgetting ad spend.
- Assuming TCS deducted by the platform is a cost (it is a tax credit).
Limitations of this Profit Margin Calculator
- It uses average per-order costs.
- GST on marketplace fees is assumed to be claimed as input credit.
- Platform-specific rules such as weight slabs are not modelled; enter your actual costs.
Profit Margin Calculator vs other ways to calculate
| Cost | Typical range | Notes |
|---|---|---|
| GST | 0–18% (40% for some goods) | Not your income |
| Commission | 0–30% | Depends on platform and category |
| Shipping | ₹40–₹150 | Depends on weight and zone |
| Returns | 5–30% of orders | High in fashion |
For a simple cost and price check without marketplace fees, use the profit and loss calculator. To plan monthly volume, see the break even calculator.
Privacy and data handling
This Profit Margin Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Profit Margin Calculator FAQs
What is the difference between gross and net margin?
Gross margin subtracts only product cost; net margin subtracts all costs, including fees, shipping, ads and returns.
How is profit margin calculated?
Net profit divided by net revenue, multiplied by 100.
What is a good profit margin for online sellers?
It varies by category, but many sellers aim for a net margin of 15–25% after all costs.
Should GST be included in margin?
No. For registered sellers, GST is collected for the government, so remove it from the selling price first.
How do returns affect margin?
Each return usually costs forward and return shipping plus packing, with no sale. Spread that cost across all orders using your return rate.
Are TCS and TDS deducted by marketplaces a cost?
No. They are credited to your tax account and can be adjusted against your GST and income tax.
Related tools
Sources and references
We checked the method and the current figures used in this Profit Margin Calculator against these official and primary sources:
Written and reviewed by the Qorico Team
