See how much each order contributes after product cost, fulfilment, returns and marketing — CM1, CM2 and CM3.
Reviewed by CA Apurav GargUpdated Your numbers stay in your browser
What the customer pays for one order, including GST.
Use “Custom rate” for rates like 3% or 0.25%.
Landed cost, excl. GST if you claim ITC on it.
Boxes, tape, inserts. Blank = none.
Per delivered order. Blank = none.
Charged on every order dispatched.
Share of dispatched orders that come back undelivered.
Ad spend ÷ orders dispatched. Blank = none.
Enter costs excluding GST if you claim ITC on them; including GST if you can’t.
Coupon or offer given on the invoice. Blank = none.
Return shipping + handling + any marketplace fee charged on an RTO.
Returned units you can’t resell.
, per order dispatched
₹36345.4% of net revenue
For every ₹100 of net revenue, ₹45 is left after marketing.
Running totalDeduction
| Step | ₹ per order dispatched |
|---|---|
| Net revenue | ₹800 |
| Product cost | −₹246 |
| CM1 | ₹554 |
| Fulfilment & RTO | −₹91 |
| CM2 | ₹463 |
| Marketing | −₹100 |
| CM3 | ₹363 |
| Item | ₹ per order dispatched | How we got this |
|---|---|---|
| Net revenue (excl. GST, after discount and RTO) | ₹800 | |
| Less: product cost (incl. damaged returns) | −₹246 | |
| ₹554 | ||
| Less: packaging | −₹15 | |
| Less: marketplace and payment fees | ₹0 | |
| Less: forward shipping | −₹60 | |
| Less: cost | −₹16 | |
| ₹463 | ||
| Less: marketing | −₹100 | |
| ₹363 |
Rounded to the nearest rupee. Tap ⓘ to see the working.
Revenue alone does not tell you whether an order makes money. This calculator takes one order and peels away its costs in three layers, so you can see where the margin goes — product, fulfilment and returns, or marketing.
Selling price ₹1,180 including 18% GST, no discount. Product cost ₹300, packaging ₹15, no marketplace fees, forward shipping ₹60. One in five orders comes back (20% RTO), each costing ₹80, and 10% of returned units cannot be resold. Marketing works out to ₹100 per order dispatched.
Selling price ₹1,155 including 5% GST, with a ₹105 discount on the invoice. Product cost ₹350, packaging ₹20, fees ₹50 per delivered order, forward shipping ₹50. 10% RTO at ₹70 each, no damaged returns. Marketing ₹150 per order dispatched.
Selling price ₹590 including 18% GST. Product cost ₹220, packaging ₹15, fees ₹40 per delivered order, forward shipping ₹70. 30% RTO at ₹90 each, with 20% of returned units damaged. Marketing ₹180 per order dispatched.
Our MIS & Reporting service builds this view from your actual books every month, by channel and by SKU.
CM1 is net revenue minus the cost of the products sold, including stock lost to damaged returns. CM2 is CM1 minus the cost of getting orders to customers: packaging, marketplace and payment fees, shipping, and the cost of returned (RTO) orders. CM3 is CM2 minus marketing spend. It is what each order contributes towards your fixed costs, such as salaries and rent.
You pay to pack and ship every order you dispatch, including the ones that come back. Working per order dispatched spreads the cost of returns over all orders, which is how the cost actually lands in your books. Switch to “per order delivered” to compare with reports that only count delivered orders.
A returned order earns no revenue, but you still pay forward shipping, packaging, return shipping and handling, and you may lose the stock if it comes back damaged. That is why a 20% RTO rate can take a large share of CM2 even before marketing.
Enter costs excluding GST if you claim input tax credit on them, because that GST comes back to you. If you cannot claim it — for example on some courier invoices — enter the cost including GST, since the GST is then a real cost.
It depends on your category, your fixed costs and whether you are growing or profitable. What matters is that CM3 across all orders covers your monthly fixed costs — salaries, rent, software — with something left over. Track it month by month rather than comparing with other brands.
CM2 is what each order leaves before marketing, so it is the most you can spend to win that order without losing money. Use “Check my break-even ROAS” to turn it into the ROAS your ads need to hit.
We reconcile marketplace settlements, GST and TDS for D2C and marketplace sellers every month. Share your reports and we will walk you through what we find.
Indicative estimate for general information only, based on the assumptions shown on this page. It is not professional advice. Rates on this page have not yet been verified by a CA.