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Product Pricing Calculator

Work out the exact price to list a product at. Enter your cost, per-order costs, expected RTO rate and the margin you want, and get the price that survives returns.

Recommended price
Rs 1,976
to net 25.0% after RTO
Markup on cost
2.82×
on Rs 700 cost
Profit / delivered order
Rs 494
25.0% net margin
Breakeven price
Rs 1,482
lose money below this
Product
what you pay per unit
PKR
Per order costs
return billed at same rate
PKR
PKR
PKR
PKR
Targets
returned to origin
%
profit you want to keep
%

List this product at Rs 1,976a 2.82× markup on your Rs 700 cost. After absorbing 15.0% RTO, return courier and all per-order costs, you keep Rs 494 (25.0%) on every delivered order. Anything below Rs 1,482 loses money.

Price composition

where each rupee of the price goes

Product costRs 824 · 41.7%
Courier (fwd + RTO)Rs 271 · 13.7%
PackagingRs 59 · 3.0%
ConfirmationRs 35 · 1.8%
Ad spendRs 294 · 14.9%
Your profitRs 494 · 25.0%
Selling priceRs 1,976

Per delivered order

economics at the recommended price

Selling price
Rs 1,976
what one customer pays
All-in cost
Rs 1,482
incl RTO drag
Profit
Rs 494
kept per order
Net margin
25.0%
as targeted

The RTO trap

why simple cost-plus pricing fails for COD

Naive price
Rs 933
cost + margin only
Its real margin
-58.8%
after COD costs hit
COD premium
Rs 1,043
must add to the price

Pricing at "cost + 25.0%" (Rs 933) ignores courier, returns and ads — at 15.0% RTO that's actually a -58.8% margin, i.e. a loss. You must add Rs 1,043 to truly keep 25.0%.

Solves the COD profit model backward for price · figures are estimates

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