How this calculator works
D2C brands often price from cost plus a markup and then discover ads, shipping, payment fees and returns eat the margin. This works backwards from every cost per order to the price that leaves your target profit.
Percentage costs such as gateway fees, marketplace commission and returns are charged on the price, so they are solved for, not just added.
Formula
Worked example
A ₹320 product with ₹25 packing, ₹70 shipping and ₹150 ad spend per order, 2.36% gateway fees, 6% returns and a 15% target margin needs ₹737 before GST. At 5% GST that is an MRP of ₹779.
Things to watch
- Ad spend per order is CAC for first orders; repeat orders cost less, so blend them.
- RTO (return to origin) costs shipping both ways; include it in the returns percentage.
- Enter your current price to see the margin you are really making.
Questions
Why not just add a markup to cost?
Because fees and returns scale with the price, and ads often cost more than the product. A cost-plus price usually leaves too little.
What returns rate should I assume?
Apparel and footwear often see 15–30% including RTO; consumables 3–8%. Use your own data once you have it.
Is the payment gateway fee 2% or 2.36%?
A 2% fee plus 18% GST on the fee comes to 2.36% of the order value.
Should MRP end in 9?
It is a convention, not a rule. The rounded figure is a starting point.
For planning and education only, not tax, legal or investment advice. Last reviewed 2026-10-31.