How to use the profit calculator
- Enter the amount you pay for one unit of the product.
- Add packaging, shipping, and any other variable cost you incur per sale.
- Enter the price the customer pays, including tax if you remit it.
- Set the marketplace or payment gateway fee percentage (e.g. 15 for Amazon, 3 for Razorpay).
- Add your advertising cost per sale — the average amount you spend to acquire one customer.
- Read net profit, margin, ROI, and break-even price instantly. Results update as you type.
Formulas used
Total cost = product + packaging + shipping + other + advertising
Marketplace fees = selling price × fee % ÷ 100
Net profit = selling price − marketplace fees − total cost
Profit margin = net profit ÷ selling price × 100
ROI = net profit ÷ total cost × 100
Break-even price = total cost ÷ (1 − fee % ÷ 100)
Worked example
A seller buys a product for ₹400, spends ₹30 on packaging, ₹60 on shipping, ₹40 on ads, and sells it for ₹900 on a marketplace that charges 15%.
| Item | Amount |
|---|---|
| Product cost | ₹400.00 |
| Packaging | ₹30.00 |
| Shipping | ₹60.00 |
| Advertising | ₹40.00 |
| Total cost | ₹530.00 |
| Marketplace fees (15%) | ₹135.00 |
| Net profit | ₹235.00 |
| Profit margin | 26.11% |
| ROI | 44.34% |
| Break-even price | ₹623.53 |
Frequently asked questions
Does the calculator include GST?
It treats the selling price you enter as the amount you actually keep before fees. If you collect GST separately and remit it, enter the price excluding GST.
What is "advertising cost per sale"?
The average amount you spend on ads for every order you receive. If you spend ₹5,000 on ads and get 100 sales, your ad cost per sale is ₹50.
Why is my ROI different from margin?
Margin is profit divided by selling price. ROI is profit divided by total cost. They describe the same profit from different angles.
What does "break-even price" mean?
The selling price at which net profit is exactly zero, after all costs and fees. Any price above it makes a profit.