Unit Economics Calculator ↗
Estimate contribution per order after product, fulfilment and acquisition costs.
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Free marketplace calculator
E-Commerce Platform Profit Calculator
Calculate expected profit for marketplace orders after commission, sales tax (GST/VAT), returns, RTO, logistics, product cost and advertising.
Free to use · No signup · Calculations run in your browser · Choose any currency
Works for any market. Enter your own costs and rates.
01
Profit inputs
Common inputs
Platform inputs
A
Revenue
- Gross selling price
- $1,699.00
- Successful order rate
- 85.00% 1 − 10% − 5% = 85.00%
- Expected gross revenue
- $1,444.15 $1,699.00 × 85.00%
- Expected taxable revenue
- $1,402.09 $1,444.15 ÷ (1 + 3%)
- Output sales tax
- $42.06 $1,444.15 − $1,402.09
B
Deductions
- TDS (recoverable)
- $1.40 $1,402.09 × 0.1%
- TCS (recoverable)
- $7.01 $1,402.09 × 0.5%
- Platform Commission
- $505.45 $1,699.00 × 35% × 85.00% success
- Tax on Commission
- $90.98 $505.45 × 18%
- Expected logistics
- $6.00 $0.00 + 10%×($30.00+$30.00) + 5%×$0.00
- Expected payout
- $833.30 Gross revenue − recoverable deductions − platform commission − fee GST − logistics
C
Profitability
- Reported ROAS
- 2.30
- Net ROAS after returns
- 1.95 2.3 × 85.00%
- Ad cost per order
- $738.70 $1,699.00 ÷ 2.3
- Expected product cost
- $425.00 $500.00 × 85.00%
- Returned product loss
- $0.00 $500.00 × 10% × 0% loss
- Expected profit
- -$273.06 Taxable revenue − platform commission − logistics − ads − product and return costs
- Profit margin
- -19.48% -$273.06 ÷ $1,402.09 × 100
D
Pricing recommendation
- Break-even selling price
- $4,636.40 Fixed costs ÷ retained revenue coefficient at current ROAS
- Price for 10% profit
- $41,299.99 The target price is mathematically possible but may be commercially impractical because variable costs consume nearly all retained revenue.
- Required price increase
- $39,600.99 $41,299.99 − $1,699.00
- Required increase %
- 2330.84% $39,600.99 ÷ $1,699.00 × 100
- Break-even ROAS
- 3.65 $1,699.00 ÷ max affordable ad cost ($465.63)
Scenario estimate based on your inputs. It does not connect to your store or replace actual settlement and cost reports.
How to use this calculator
Enter the gross marketplace price, tax and recovery rates, product cost, ROAS, return and RTO assumptions. Add platform commission and logistics, then compare expected profit, target price and break-even ROAS.
Worked example
At ₹1,699 with 10% returns, 5% RTO, 35% refundable commission and 2.3× ROAS, the successful-order rate is 85%. With ₹500 COGS and the logistics shown in the calculator, the model estimates a loss and a much higher target price.
What the estimate leaves out
Marketplace fee rules, tax bases and refund policies vary. This model treats TDS, TCS and GST on commission as recoverable, excludes fixed overhead and assumes entered rates remain constant as price changes.
Use inputs from the same reporting period and compare the result with your actual costs before making a decision.
Explore store conversion services ↗Shopify Conversion Audit Checklist ↗ · Read the complete unit economics guide ↗
Is this marketplace selling price actually profitable?
- Successful order rate
- The share of placed orders left after the entered return and RTO rates. Revenue, product cost and refundable commission are weighted by this rate.
- Recoverable deductions
- TDS, TCS and GST on commission reduce the expected payout shown here, but are not treated as an expense in the profit estimate.
- Target selling price
- The estimated gross price needed to reach the selected profit margin under the same return, commission, ROAS and cost assumptions.
Why it matters
See What Marketplace Revenue Leaves Behind
A marketplace selling price can look healthy before commission, failed deliveries and ad cost are included. This view brings those moving parts into one order-level model.
- 01
Separate payout from profit
Settlement deductions and recoverable taxes affect cash received, while operating costs determine the modeled profit.
- 02
Test price before listing
Compare the current price with break-even and target-margin prices before committing inventory or ad spend.
- 03
Set a workable ROAS floor
Use the break-even ROAS to see how much advertising cost the order can support under the same assumptions.
Frequently asked
Straight answers.
How is marketplace profit calculated?
Expected taxable revenue is reduced by platform commission, expected logistics, ad cost, expected product cost, return loss, processing and other entered costs.
Why are TDS and TCS not subtracted from profit?
They are shown as recoverable settlement deductions. Confirm their actual tax treatment with your accountant and reconcile against platform statements.
What does commission refunded mean?
When selected, commission is charged only on the successful-order share. Turn it off if your platform retains commission on returns or RTO.
Why can the target price become very high?
When commission, returns and ad cost consume most retained revenue, only a small share of each price increase reaches profit. The warning flags that situation.
Check the next part of the picture.
Website / D2C Profit Calculator ↗
Calculate profitability for direct website sales after gateway fees, delivery, returns and advertising.
Calculation method and examples maintained by MlabsGrowth. See the assumptions above before using an estimate.
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