Product Pricing Calculator (India + GST)

How this pricing calculator works

1. Cost goes in. Include landed cost (product + freight + duty + packaging).
2. Margin % is your target — what fraction of every sale should be profit.
3. We compute the pre-GST price using price = cost ÷ (1 − margin%).
4. We add GST on top to get the final list/MRP price.

Example: ₹500 cost, 40% margin, 18% GST

• Pre-GST price: ₹500 ÷ (1 − 0.40) = ₹833.33
• GST @ 18%: ₹833.33 × 0.18 = ₹150.00
• Final list price: ₹983.33
• Profit per unit: ₹333.33

Common pricing mistakes Indian sellers make

• Pricing on cost only — skipping commission, shipping, RTO. Real net margin is half what gross margin shows.
• Ignoring GST in MRP — competitors show MRP inclusive; if you show pre-GST, you look more expensive at first glance.
• Round-number pricing — ₹999 converts better than ₹1,000 in Indian e-commerce. Use round numbers slightly under each ₹500/₹1,000 break.
• Ignoring marketplace fees — pricing for D2C and marketplace identically eats your margin alive on Amazon/Flipkart. Use the commission calculator.

FAQs

Should my margin be set on cost or on price?

Always on price (margin %). Cost-based markup gives you a price; margin tells you what fraction of every sale is profit. Margin is the apples-to-apples metric across SKUs and channels. See the difference here.

Is the GST tax-inclusive or tax-exclusive in the result?

The "final price" line is what the customer pays — GST included. The "pre-GST price" is your invoice base, which is what your gross margin is calculated on. If you sell on a marketplace that lists MRP-inclusive, use the final price as MRP.

How does FlexiCommerce price products?

FlexiCommerce lets you set MRP, sale price, and cost per product. Margin is computed automatically per order, GST is applied based on your HSN code, and you can run discount campaigns without losing the underlying cost/margin tracking. Live demo.