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D2C-to-Offline Margin Waterfall Calculator

See what a unit earns in general or modern trade after channel margins, free-unit schemes, returns and credit.

Reviewed by CA Apurav GargUpdated Calculated in your browser; copied links include your figures

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Calculator

Note:
Example values — replace with yours.
How does the product reach the shelf?

General trade: super stockist, distributor, retailer

Your product

The maximum retail price printed on the pack.

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

Off the MRP.

Off the price to retailer.

Off the price to distributor.

What one unit costs you, ready to dispatch.

Illustrative default — replace with yours. For monthly profit and working capital.

Illustrative default — your online CM3 after CAC, shipping and RTO, to compare.

Advanced options
How are the margins stated?

A 20% margin on ₹100 leaves ₹80.

Units the buyer pays for.

Free units given with them. 0 if none.

Expired or damaged stock credited back.

Primary freight, merchandisers and sales staff, per unit.

Days from your invoice to payment.

What borrowed money or your own cash costs you.

The figures below start with illustrative defaults — replace them with your own data.

Target rebates, secondary schemes, or modern-trade visibility and TOT deductions.

Store listing, gondola display or promoter fees, excl. GST.

Expired or damaged RTV stock that is destroyed: the input GST claimed on it is reversed (Section 17(5)(h), CGST Act, 2017).

Your result

Contribution per unit sold offline

₹89.16

Each unit sold offline leaves ₹89.16: 34.9% of net revenue and 17.8% of MRP.

Price to retailer (incl. GST)
₹400.00
You bill the first buyer (excl. GST)
₹263.48
Net revenue after returns
₹255.58
Credit cost per unit
₹7.67
D2C vs offline
ContributionPer unitA month (2,000 units)
D2C CM3 (your figure)₹110.00₹2,20,000
Offline contribution₹89.16₹1,78,311
Offline profit after fixed cost₹1,78,311

D2C CM3 is the figure you enter; it is not checked.

Cash tied up offline
This channelAmount
Working capital locked in trade credit (60 days)₹12,43,636
Units a month to cover the fixed costNo fixed cost entered

Working capital = units a month × billed value incl. GST × credit days ÷ 30.

From MRP to contribution, per unit (excl. GST)
MRP excl. GST₹424Retailer margin−₹85Distributor margin−₹34Super stockist margin−₹15Free-unit scheme−₹26Returns (RTV)−₹8Net revenue₹256Landed cost−₹140GST reversed on RTV stock−₹1Freight & field sales−₹18Credit cost−₹8Contribution₹89

Running totalDeduction

What this tells you

A product that sells well online at full price can leave much less once it goes through a super stockist, a distributor and a retailer, each taking a margin off the MRP, with free-unit schemes, returned stock and long credit on top.

Enter the MRP and the channel’s trade terms to see the price at each level and what each unit contributes after landed cost, freight and the cost of credit.

Assumptions used

  • Product GST rate choices: 0%, 5%, 12%, 18%, 40%, or a custom rate.
  • Margins are taken on prices including GST, the way trade terms are usually stated; your revenue is taken excluding GST.
  • Free units in a scheme are shipped at no price and cost the same as a paid unit.
  • Returns to vendor are a share of the billed value and the stock is not resold.
  • When unsellable returned stock is destroyed, the input GST claimed on it is reversed (Section 17(5)(h), CGST Act, 2017; as on 2 November 2026). Turn this off if the stock is resold.
  • Trade schemes and TOT (illustrative default 0%) are a share of the billed value. Offline units a month (default 2,000) and D2C CM3 (default ₹110) are illustrative defaults to replace with your own.
  • Working capital locked = units a month × billed value incl. GST × credit days ÷ 30.
  • The credit cost is on the billed value including GST, for the credit period, at your cost of money.
  • Figures are rounded for display only; the working uses exact values.
Legal references and sources
Product GST rate choices
Notification No. 09/2025–Central Tax (Rate) dated 17 September 2025, effective 22 September 2025, on the recommendations of the 56th GST Council meeting (nil, 5%, 18% and 40%); verified as on 2 November 2026. 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 · Last verified 27 Oct 2026 · Official source
GST credit on gifts and free samples
Section 17(5)(h), CGST Act, 2017 — input tax credit is not available (and must be reversed) in respect of goods disposed of by way of gift or free samples without consideration.
Last verified 27 Oct 2026

How this is calculated

  1. Margin off the selling price: PTR = MRP × (1 − retailer margin); PTD = PTR × (1 − distributor margin); PTSS = PTD × (1 − super stockist margin).
  2. Mark-up on cost: PTR = MRP ÷ (1 + retailer mark-up), and so on down the chain. Levels the channel skips are left out.
  3. Billed per unit (excl. GST) = price to the first buyer ÷ (1 + GST rate) × units paid ÷ (units paid + free units).
  4. Net revenue = billed × (1 − returns to vendor − trade scheme / TOT).
  5. GST reversed on RTV stock = returns % × landed cost × GST rate (when the switch is on).
  6. Credit cost = billed incl. GST × cost of money × credit days ÷ 365.
  7. Contribution = net revenue − landed cost − GST reversed − freight & field sales − credit cost.
  8. Monthly offline profit = contribution × units a month − fixed listing and promoter cost.

Terms used here

Worked examples

Example: a ₹500 MRP through a super stockist

18% GST; retailer 20%, distributor 10%, super stockist 5% off the price above; buy 10 get 1 free; 3% returns; landed cost ₹140, freight ₹18; 60 days’ credit at 15% a year.

  • PTR ₹400.00 (₹338.98 excl. GST), PTD ₹360.00 (₹305.08), PTSS ₹342.00 (₹289.83).
  • After the scheme you bill ₹263.48 a unit; after returns, net revenue is ₹255.58.
  • Less cost, ₹0.76 of GST reversed on returned stock and freight: ₹96.82. Credit cost ₹7.67. Contribution ₹89.16 a unit, 34.9% of net revenue and 17.8% of MRP.

Example 2: modern trade with TOT, a listing fee and the D2C comparison

You bill ₹260.00 a unit excl. GST (₹306.80 incl. 18%); 2% returns and 3% TOT; landed cost ₹120, freight ₹15, credit cost ₹4.50 for 45 days; 2,000 units a month and ₹20,000 a month of listing fees.

  • Net revenue ₹247.00; GST reversed on returned stock ₹0.43; contribution ₹107.07 a unit against a D2C CM3 of ₹110.
  • A month: ₹107.07 × 2,000 − ₹20,000 = ₹1,94,136.00.
  • Working capital locked: 2,000 × ₹306.80 × 45 ÷ 30 = ₹9,20,400.00.

Our MIS & Reporting service reports contribution by channel every month.

Questions sellers ask

What is the difference between a margin and a mark-up?

A margin is a share of the selling price: a 20% retailer margin on a ₹500 MRP leaves a price to retailer of ₹400. A mark-up is added on the buyer’s cost: a 20% mark-up means the retailer paid ₹500 ÷ 1.2 = ₹416.67. Choose how your trade terms state it under Advanced options.

Who are the super stockist and the distributor?

In general trade, a super stockist usually buys from the brand for a state or region and supplies distributors, who supply retailers. Smaller brands often skip the super stockist and bill distributors directly. Modern trade chains usually buy from the brand directly.

How does a “buy 10 get 1 free” scheme affect revenue?

The free units ship at no price, so the revenue per unit shipped falls by the scheme factor: 10 ÷ (10 + 1), or about 9.1% less.

Why does the credit period matter?

Until the first buyer pays, the invoice value including GST is money you have funded. The calculator puts a cost on that at your cost of money, for the number of days of credit you give.

Is the GST at each level a cost to the brand?

No. Each level charges GST on its sale and claims credit for the GST it paid, so the margins are worked out on the prices including GST and the brand’s revenue is taken excluding GST.

Want our team to look at these numbers alongside your books?

We keep books, file GST and TDS returns and prepare monthly MIS for D2C and marketplace sellers. Share your figures and we will walk you through what we find.

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Disclaimer

A planning estimate for general information only, based on the figures you enter. It is not professional or tax advice. Trade terms, schemes and credit periods vary by channel and region.

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