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Discount, Bundle & Free-Shipping Calculator

See how much extra you must sell to make a discount, bundle or free-shipping offer pay for itself.

Prepared by ecomca · rates awaiting CA reviewUpdated Calculated in your browser; copied links include your figures

Calculator

Note:
Example values — replace with yours.
What do you want to check?

Your product and order

What the customer pays for one unit at full price.

Presets are today’s common rates. Use “Custom rate” for any other rate, including special rates and rates for earlier periods.

Purchase price plus freight in, excl. GST if you claim ITC.

What you pay the courier. Blank = none.

Boxes, tape, inserts. Blank = none.

Payment-gateway % for your own site, or marketplace commission %.

Ad spend ÷ orders. Blank = none.

At full price, before the offer.

Advanced options

A flat fee per order on top of the %, e.g. a closing fee. Blank = none.

The shipping fee customers pay you today. Blank or 0 = free shipping already.

Fee changes below a price point

Some marketplaces charge a lower fee below a price, e.g. during a sale event. Fill in both to use it; it applies when the price per unit in the order falls below the price point.

Blank = no change.

Blank = no change.

Offers to compare

Offer 1

Off the selling price, incl. GST.

Offer 2
Offer 3

Your result

Offer 1: 20% off

92.1%more orders

You need 92.1% more orders to earn the same: 1,922 a month instead of 1,000. per order ₹386 → ₹201.

CM3 per order today
₹386
Offer 2: Buy 2 get 1 free
45.8% fewer orders
Offer 3: 2 for ₹1,799
53.3% fewer orders
Today and each offer, per order
₹ per orderTodayOffer 1: 20% offOffer 2: Buy 2 get 1 freeOffer 3: 2 for ₹1,799
Customer pays (incl. GST)₹999₹799₹1,998₹1,799
Units in the order1132
Net revenue (excl. GST)₹951₹761₹1,903₹1,713
Landed cost−₹300−₹300−₹900−₹600
Packaging and shipping−₹90−₹90−₹90−₹90
Channel fee−₹25−₹20−₹50−₹45
CM2₹536₹351₹863₹978
Marketing−₹150−₹150−₹150−₹150
CM3 per order₹386₹201₹713₹828
CM3 % of net revenue40.6%26.4%37.5%48.3%
Orders a month to earn the same1,0001,922543467
Change in orders+92.1%−45.8%−53.3%
Units a month1,0001,9221,627934

Rounded to the nearest rupee; orders and units are rounded up to whole numbers. Costs are shown as negatives. No shipping is charged to customers today.

What this tells you

A discount, bundle or free-shipping offer changes what each order leaves after costs. This calculator shows how many orders you then need to earn the same contribution (CM3) as today — up to three offers side by side.

It also finds the order value at which free shipping pays for itself, and the lowest price that keeps a target margin on a new product.

Assumptions used

  • Product GST rate choices: 0%, 5%, 18%, 40%, or a custom rate.
  • Every order is delivered: returns (RTO) and cancellations are not included.
  • Shipping charged to customers is treated as part of the order and taxed at the product’s GST rate.
  • The channel fee is a percentage of what the customer pays, including GST and any shipping charged, plus any fixed fee per order.
  • Shipping, packaging, the fixed fee and marketing are per order and stay the same whatever the order size; landed cost is per unit.
  • Free units in a “buy X get Y free” offer cost their full landed cost.
  • The free-shipping threshold and pricing sections use the main fee percentage; the lower fee below a price point is not applied there.
  • Fixed costs such as salaries, rent and software are not included — they come out of CM3.
  • Orders and units are rounded up to whole numbers and figures to the nearest rupee for display only; the working uses exact values.
Legal references and sources
Product GST rate choices
Rate rationalisation effective 22 September 2025 on the recommendations of the 56th GST Council meeting (nil, 5%, 18% and 40%). Use 'Custom rate' for special rates such as 3% or 0.25%, and for 12% or 28% on sales made before 22 September 2025 (28% plus cess continued on tobacco and pan masala until 31 January 2026).
Effective from 22 Sept 2025 · Awaiting CA verification · Official source

How this is calculated

  1. Order value = what the customer pays for the goods under the offer + any shipping charged (incl. GST).
  2. Net revenue = order value ÷ (1 + product GST rate).
  3. Channel fee = fee % × order value + fixed fee per order (the lower % applies when the price per unit is below the price point).
  4. CM3 per order = net revenue − landed cost × units − packaging − shipping − channel fee − marketing.
  5. Orders needed = CM3 per order today × orders today ÷ CM3 per order with the offer.
  6. Change in orders = orders needed ÷ orders today − 1.

Free-shipping threshold. Each extra item adds price ÷ (1 + GST) − fee % × price − landed cost. Items needed = (CM3 per order today + packaging + shipping + fixed fee + marketing) ÷ that amount; the threshold is items needed × price.

Pricing. Minimum price = (landed cost + packaging + shipping + fixed fee + marketing) ÷ ((1 − target %) ÷ (1 + GST) − fee %). If the bottom of that sum is zero or less, no price reaches the target.

Worked examples

A ₹999 product with 5% GST. Landed cost ₹300, shipping ₹70 and packaging ₹20 per order, a 2.5% payment-gateway fee and ₹150 of marketing per order. 1,000 orders a month today, no shipping charged to customers. Each order leaves a CM3 of ₹386.45, or ₹3,86,454 a month.

Example 1: 20% off

The customer pays ₹799.20. Net revenue ₹761.14, fee ₹19.98, CM2 ₹351.16, CM3 ₹201.16. To earn today’s ₹3,86,450 a month: 3,86,450 ÷ 201.16 = 1,921.1 orders, so 1,922 orders, 92.1% more.

Customer pays (incl. GST)
₹799.20
Units in the order
1
CM3 per order
₹201.16
Orders a month to earn the same
1,922
More orders needed
92.1%

Example 2: Buy 2 get 1 free

The customer pays ₹1,998 for 3 units. Net revenue ₹1,902.86, fee ₹49.95, CM2 ₹862.91, CM3 ₹712.91. 3,86,450 ÷ 712.91 = 542.1 orders, so 543 orders (45.8% fewer), or 1,627 units.

Customer pays (incl. GST)
₹1,998.00
Units in the order
3
CM3 per order
₹712.91
Orders a month to earn the same
543
Fewer orders needed
45.8%
Units a month
1,627

Example 3: 2 for ₹1,799

Net revenue ₹1,713.33, fee ₹44.98, CM2 ₹978.36, CM3 ₹828.36. 3,86,450 ÷ 828.36 = 466.5 orders, so 467 orders (53.3% fewer), or 934 units.

Customer pays (incl. GST)
₹1,799.00
Units in the order
2
CM3 per order
₹828.36
Orders a month to earn the same
467
Fewer orders needed
53.3%
Units a month
934

Example 4: ₹150 off

The customer pays ₹849. Net revenue ₹808.57, fee ₹21.23, CM2 ₹397.35, CM3 ₹247.35. 3,86,450 ÷ 247.35 = 1,562.4 orders, so 1,563 orders, 56.2% more.

Customer pays (incl. GST)
₹849.00
Units in the order
1
CM3 per order
₹247.35
Orders a month to earn the same
1,563
More orders needed
56.2%

Example 5: Free shipping above an order value

The same product. Today customers buy 1 item per order and pay ₹59 shipping on it.

CM3 per order today
₹441.17
Contribution per extra item
₹626.45
Items per order needed
1.09
Free shipping pays for itself from
₹1,087 or more

Example 6: Pricing for a 20% CM3

The same costs, aiming to keep 20% of net revenue as CM3.

Minimum selling price (incl. GST)
₹733
Highest landed cost at ₹999
₹496

Our MIS & Reporting service tracks contribution by channel, SKU and campaign every month, so you can see what a sale actually earned.

Questions sellers ask

Is a bundle better than a straight discount?

Often, because a bundle spreads the per-order costs — shipping, packaging, the fixed part of the fee and marketing — over more units, while a straight discount comes entirely out of your margin. Compare both here with your own costs: a “2 for ₹1,799” bundle can need fewer orders than today, while 20% off the same product can need almost twice as many.

Why does a small discount need so many more orders?

The discount comes off the price, but your costs per order stay the same, so the whole discount comes out of your contribution. If an order leaves ₹386 after all variable costs and a discount takes ₹185 of that away, each order now leaves about ₹201, and you need nearly twice the orders to earn the same.

How do I allow for a marketplace sale where the fee changes below a price?

Open Advanced options and enter the price point and the fee below it under “fee changes below a price point”. The calculator applies the lower fee to any offer whose price per unit falls below that point and marks it with an asterisk in the comparison table. Check the current fee structure with each marketplace before the sale.

How do I choose a free-shipping threshold?

Use “Free-shipping threshold”. It finds the order value at which an order with free shipping leaves the same contribution as today’s typical order with paid shipping. Setting the threshold at or above that figure means the larger orders pay for the shipping you no longer charge.

Does this include returns (RTO)?

No. The figures assume every order is delivered. Returned and undelivered orders reduce what each order leaves, so if your RTO rate is meaningful, work out its cost first and add it to your shipping cost per order.

Work out your RTO and COD cost

What about fixed costs like salaries and rent?

They are not included. The calculator compares the contribution after variable costs and marketing (CM3), which is what pays for fixed costs. An offer that earns the same CM3 as today leaves your fixed costs covered exactly as before.

Want our team to check these numbers against your actual settlement reports?

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.

Disclaimer

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.

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