Calculate exact net margins, platform deductions, and ROI per order
Gross Revenue:
₹499.00
Total Deductions (Fees + Tax + Shipping):
₹186.03
Total Product Expense:
₹195.00
Net Profit Per Order:
₹117.97
Profit Margin / Return on Investment (ROI):
23.64% Margin | 60.50% ROI
Why Unit Economics Matter for Online Sellers
Selling products on marketplaces like Meesho, Flipkart, or Amazon requires accurate profit calculations. A seller might see high overall sales figures, yet end up losing money due to hidden logistics costs, marketplace commission fees, packaging expenses, and tax deductions.
How Does This Profit Margin Calculator Work?
This tool breaks down your pricing pipeline in real time:
- Gross Revenue vs Deductions: Subtracts marketplace commission percentage, fixed shipping charges, and GST obligations directly from the listing price.
- Net Cost Baseline: Factors in your product sourcing wholesale cost and physical packaging expenses.
- Profit Margin & ROI Percentages: Margin measures profit relative to selling price, while ROI shows return generated against your total invested cost.
Tips to Improve E-Commerce Profitability
To protect your margins and scale your online store successfully:
- Account for Return Rates (RTO): Always reserve a 10-15% margin buffer to absorb courier return costs on Cash on Delivery (COD) orders.
- Optimize Packaging Weight: Keep box sizes compact to avoid falling into higher volumetric shipping weight slabs.
- Claim Input Tax Credit (ITC): Ensure you receive GST invoices for marketplace fees and sourcing to offset your final GST liability.