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Free calculator · Online store

Product profit calculator: what does one order really leave you?

A ₹999 order is not ₹999 in your pocket. Discount, GST, RTO, shipping both ways, COD charges and ads all come out of it. Put in your numbers and see what each order really leaves you, and the price and ROAS you need to break even.

Example numbers - replace with yours

Your result Electronics and gadgets

Your funnel this month

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    How this is calculated
    1. Price paid = selling price × (1 − discount). Your price = price paid ÷ (1 + GST). Orders that stay sold, as a % = that share × 100.
    2. Blended RTO = COD share × RTO on COD orders + (1 − COD share) × RTO on prepaid orders. (An old share link with one RTO % uses it for both, so it gives the same answer as before.)
    3. Orders that stay sold = (1 − blended RTO %) × (1 − returns %). The rest bring no revenue.
    4. Revenue per order placed = orders that stay sold × your price.
    5. Product cost counts only units that stay sold; returned units go back on the shelf, except the share you cannot resell.
    6. Packaging and forward shipping are paid on every order dispatched, including the ones that come back.
    7. RTO and returns add return shipping, plus product cost for units you cannot resell.
    8. COD charge = COD share × COD orders delivered (1 − RTO on COD orders) × COD charge; gateway fee = prepaid share × price paid × gateway %. Marketplace commission = share that stays sold × price paid × commission % (a % of what the customer pays, on orders that stay sold).
    9. Profit per order = revenue − product − packaging − shipping − returns − payment charges − commission − ads − other. Profit before ads = that + ad cost. Per order that stays sold = profit ÷ that share (no answer when none stay sold). Net margin = profit ÷ revenue × 100 (no answer without revenue).
    10. What RTO and returns cost per order placed = (1 − share that stays sold) × (packaging + forward shipping + return shipping + product cost × % you cannot resell).
    11. Break-even ROAS = price paid ÷ profit per order before ads (not reachable when that is 0 or less). Break-even price = the selling price at which profit per order is 0 (not reachable when profit does not rise with the price).
    12. Profit a month = orders a month × profit per order − fixed costs; a year = × 12. Orders to cover fixed costs = fixed costs ÷ profit per order (0 with no fixed costs; never when each order loses money).
    13. The month: ad spend = orders × ad cost per order; stock to buy = orders × product cost (returned units go back on the shelf, so the stock cost in profit is lower); order value = orders × price paid; revenue = orders × revenue per order; packaging and shipping = orders × (packaging + shipping + return shipping on what comes back); fees = orders × (payment charges + commission); GST = orders × share that stays sold × (price paid − your price); lost to RTO = orders × what RTO costs per order; all costs = orders × costs per order + fixed. Your ROAS = price paid ÷ ad cost per order (with no ad spend there is none).
    14. Cash to run a month = ads + stock + packaging + shipping for every order, plus fixed costs: money that goes out before customers pay (COD money usually arrives days after delivery).

    Green, amber and red compare each result with the break-even your own numbers imply, never with an outside benchmark. Every starting number is an editable example, not an industry average.

    Questions

    About this calculator

    Margin usually means price minus product cost. Profit per order also takes out discount, GST, packaging, shipping, COD and gateway charges, RTO and returns, and the ad cost to win the order. Each looks small; together they often take more than the product itself.

    An order that comes back brings no revenue, but you have already paid for packaging and forward shipping, then you pay return shipping, and some units cannot be resold. The calculator charges all of that to the orders you placed, so the profit you see is after RTO. Put in RTO for COD and prepaid orders separately: most RTO is on COD, so moving buyers to prepaid cuts it.

    The selling price your customer sees includes GST. That part is collected for the government, so your revenue is the price after GST. Costs are entered without the GST you claim back as input credit.

    Your ads account shows ROAS as order value ÷ ad spend. Break-even ROAS is the ROAS at which ads take all the profit an order makes before ads. If your ads run below it, every order loses money.

    No, they are only starting values so the page is not empty. Replace them with your own numbers from your courier reports, payment settlements and ads account.