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Profit Margin

Ecommerce profit margin calculator

Enter your price and costs to see exactly what you keep on every order — in rupees and as a margin — after product cost, shipping and fees.

Net per order
Profit
₹504
Margin
50.5%
Breakdown
Selling price
₹999
Product cost (COGS)
-₹350
Shipping cost
-₹55
Other fees
-₹90
Profit per order
₹504

Gross margin looks great until shipping eats it. On a ₹999 order, a ₹55 freight charge plus a COD fee and packaging can quietly turn a 35% gross margin into something far thinner. The number that matters is margin after shipping — what actually lands in your account once the courier and the marketplace are paid.

Your shipping cost is not fixed either. The same parcel can cost very differently depending on weight slab, zone (a Mumbai-to-Guwahati leg costs more than intra-city), and whether it moves COD or prepaid. Plug in your real per-order freight from RouteOneX rate cards, add packaging and marketing, and you will see the true floor under your pricing.

FAQ

Questions about this tool

Most healthy Indian D2C SKUs run a 25-40% net margin after COGS, shipping and fees. Below 15% you have almost no cushion for an RTO, a return, or a marketing spike, so treat single-digit margins as a warning sign rather than a plan.

This tool gives you the margin on a delivered order. RTO and returns are a separate blended cost. A rule of thumb: if 10% of COD orders come back, add roughly the two-way freight of those orders as an 'other fee' to see your real blended margin.

Use the pre-GST price you actually keep as your selling price, and keep COGS pre-GST too, so input tax credit nets out. Mixing a GST-inclusive price with a pre-GST cost will overstate your margin.

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