Ecommerce Profitability Calculator (India)
Calculate your real ecommerce profit per order. Enter your product costs, marketplace fees, shipping, returns and GST to see your net profit per unit and the break-even volume each selling price needs.
Monthly Fixed Costs
Costs that stay roughly constant each month, whatever you sell.
Workspace or warehouse
All staff, including your own salary
Platform, marketing and accounting tools
Electricity, internet, phone
Loan repayments, insurance, legal fees
Total Fixed Costs
₹0
Per-Unit Variable Costs
Costs of producing, handling and selling one unit.
Cost to buy or make one unit
Box, tape, filler, labels
Supplier to your storage, per unit
Storage to the customer
Cost of handling returns, spread across all units sold
Ad spend required to generate one sale
Transaction Costs & Taxes
What processing the payment and the tax take out of each sale.
Percentage charged per transaction
Flat amount per transaction, if any
Amazon, Flipkart and similar. Leave at 0 for your own store
The rate for your product category
Pricing Scenarios & Sales Estimation
Enter the price a customer pays, including GST, and the units you expect to sell each month at that price. Add a second or third to compare them.
Scenario 1
What the customer pays
Units you expect to sell at this price
Results Comparison (monthly estimate)
| Metric | Scenario 1₹500 |
|---|---|
| Revenue | |
| Selling Price (incl. GST) | ₹500 |
| Base Price (excl. GST) | ₹424 |
| Estimated Monthly Sales | 100 units |
| Total Sales Value (incl. GST) | ₹50,000 |
| GST CollectedHeld for the government, not revenue | ₹7,627 |
| Net Revenue (after GST) | ₹42,373 |
| Per-unit variable costs | |
| COGS | ₹0 |
| Packaging | ₹0 |
| Inbound Shipping | ₹0 |
| Outbound Shipping | ₹0 |
| Return Processing | ₹0 |
| Marketing CPA | ₹0 |
| Payment Gateway | ₹10 |
| Marketplace Commission | ₹0 |
| Total Per-Unit Variable Cost | ₹10.00 |
| Profitability | |
| Profit Contribution Per Unit | ₹413.73 |
| Total Profit Contribution | ₹41,373 |
| Total Monthly Fixed Costs | ₹0 |
| Estimated Net Profit | ₹41,373 |
| Break-Even UnitsUnits per month needed to cover fixed costs | 0 units |
How this is calculated
- Base price = selling price ÷ (1 + GST rate). Price is entered inclusive because that is what a customer pays and what a marketplace listing shows.
- GST collected is excluded from revenue. It is money held for the government, so counting it as income overstates margin by roughly the GST rate.
- Payment gateway and marketplace fees are charged on the GST-inclusive price, because that is the amount actually transacted. Every other variable cost is a flat rupee amount per unit.
- Profit contribution per unit = base price − total per-unit variable cost. This is what each sale leaves behind to pay fixed costs.
- Break-even units = total fixed costs ÷ contribution per unit, rounded up. If contribution is zero or negative the store cannot break even at that price, however many it sells.
- Contribution per unit is assumed constant across volume. In practice COGS falls with order quantity and CPA usually rises as you scale, so treat high-volume scenarios as optimistic.
- Nothing you enter is stored or sent anywhere; this runs entirely in your browser.
How to use this calculator.
Built for Indian stores, in rupees, with GST handled properly: price goes in the way a customer sees it, inclusive, and GST comes back out before margin is counted — because tax collected is money held for the government, not revenue. Marketplace commission and payment-gateway fees are charged on the inclusive price, the way Amazon and Razorpay actually charge them. Enter two or three prices side by side, because break-even is a curve against price rather than a single number.
What your result means.
Profit contribution per unit is what remains after every variable cost, not just cost of goods. Many sellers calculate margin on product cost alone and discover later that commissions, shipping and returns have consumed most of it.
Break-even units is the monthly volume that price has to clear before the business makes anything at all. If contribution per unit is zero or negative the row reads Never — no amount of volume rescues a price that loses money on every order.
Why returns change everything
A returned order does not simply lose the sale. You pay forward shipping, return shipping and handling, and the product may come back damaged or unsellable. One return can wipe out the profit from several successful orders.
This is why cash on delivery, which carries far higher refusal rates than prepaid, can look profitable on revenue and lose money on margin. Model your real return rate rather than an optimistic one.
The calculator takes this as Return Processing Cost — a rupee figure per unit sold, not a percentage. To convert: multiply your two-way shipping and handling cost by your return rate, then spread it across every unit sold. A ₹120 round trip at a 25% return rate is ₹30 per unit, on every order, whether or not it comes back.
Frequently Asked Questions
Subtract every cost from your selling price, including cost of goods, packaging, shipping, marketplace commission, payment fees, GST and returns. What remains, divided by the selling price, is your true margin.
Cash on delivery carries substantially higher refusal rates, so more orders return. Each one costs you two-way shipping with no revenue, which makes the same product far less profitable on COD.
Commission on the sale, payment gateway charges, fulfilment or shipping fees, and any storage or advertising costs. These vary by category and can differ sharply between platforms.
Your profit per unit sets the ceiling. If you keep a certain amount per order, acquisition must cost less than that, or you lose money on every sale you win.
Return to origin means an order is refused or undelivered and comes back. You absorb shipping both ways plus handling, which is why high RTO rates destroy margins on otherwise profitable products.
GST applies to your selling price, and input credit on purchases offsets part of it. Sellers who ignore the net GST position often overstate their margin considerably.
It depends entirely on category and price point. What matters more is whether your margin covers customer acquisition cost with enough left over, not how it compares to an industry average.
Usually because costs scale with volume while margin per unit is too thin. Growth only helps when each additional order contributes profit rather than absorbing it.
Knowing your true margin decides what you can afford to spend acquiring a customer. Growthmak builds ecommerce growth around that number, so advertising and conversion work are judged on profit rather than revenue.
Want to turn your margin numbers into a profitable growth plan?
Book a free 30-minute diagnostic. We review your margins, acquisition costs and conversion rates to show where profit is being lost across your store.
- Where your margin is being lost between order and delivery.
- Whether your acquisition cost is sustainable at current margins.
- Which products are genuinely profitable and which are not.
- A clear written action plan, with no obligation.