Parcel Real Earnings Calculator
Calculate how much you actually earn from each online order after product cost, shipping, marketplace fees, payment charges, GST, returns/RTO and other expenses.
How to Use the Parcel Real Earnings Calculator
- Input your parameters in the fields or drag the interactive sliders.
- The algorithm updates the primary metric and schedules in real-time.
- Click “Copy Result” to copy structured values to your clipboard.
Calculation Formula
- Gross Revenue: Selling Price - Direct Customer Discount
- Expected Revenue: Gross Revenue * [1 - (Return Rate % + RTO Rate %)]
- Total Commission: (Gross Revenue * Marketplace %) + (Gross Revenue * Payment %) + Fixed Fee
- GST on Fees: Total Commission * 18% GST
- Return/RTO Cost: (Return Rate % + RTO Rate %) * Average Reverse Logistics Cost
- Net Margin %: (Expected Net Earnings / Gross Revenue) * 100
Example Calculation
₹1,000 order with ₹300 COGS, ₹90 shipping/packing, 12% fees, 18% GST, and 15% return/RTO rate
After deducting COGS, forward shipping, platform commissions with 18% GST, and return loss, you keep ₹281.60 per parcel.
Important Assumptions
- Customer returns and courier RTOs eliminate gross cash collection on returned units.
- GST at 18% is uniformly applied strictly to the platform and payment gateway fee amounts.
- Average reverse cost reflects courier return freight, repacking, and transit damage allowance.
Frequently Asked Questions
How much profit do I actually make on each parcel?
Your real profit is what remains after deducting product COGS, forward shipping, packaging, platform commissions, 18% GST on fees, and reverse return freight losses.
How does RTO affect profit?
RTO wastes both forward shipping and reverse freight charges while zero revenue is collected, severely reducing your profit margin.
Should shipping cost be included in product margin?
Yes. Forward shipping and packaging are unavoidable variable costs that must be accounted for before determining unit profitability.
What is the difference between revenue and actual earnings?
Revenue is the customer invoice headline total. Actual net earnings is the real cash credited to your bank account after all deductions and reverse logistics.