Sale Discount and MRP Calculator: How Deep Can You Go Before You Lose Money?

This calculator tells you the lowest price you can sell at without losing money, and the biggest discount off MRP that price allows. You enter your MRP, product cost, GST rate and marketplace costs. It then shows profit per unit at discounts from 10% to 70%. Every default below is a placeholder to be replaced with your own numbers, because fees differ by category, price band and marketplace, and they change.

Which numbers should I put in?

The defaults in the calculator are not marketplace rates. They are round numbers chosen so the sums are easy to follow. Replace each one.

Some fees may be zero for you. Amazon removed referral fees on products priced under ₹1,000 from 16 March 2026, and its October 2026 festival note refers to zero referral fees on certain products, and Flipkart said it introduced 0% commission across all price points for fashion. Conditions and category lists apply. Check your own account before you type 0.

Calculator

How does the calculator work?

Selling price is what the customer pays, including GST. The calculator takes four steps.

1. Remove GST from the selling price. Net revenue = selling price ÷ (1 + GST rate). GST collected is passed to the government, so it is not your income.
2. Add up marketplace charges. Fee = fee % × selling price + fixed fees and shipping. GST on that fee is added on top, using your fee GST rate. The calculator counts that GST as a cost. If you can claim it back as input credit, set the fee GST to 0.
3. Subtract cost and per-order extras. Profit = net revenue − product cost − returns and ads − fees with GST.
4. Solve for the price. Break-even is the selling price where profit is zero. The calculator rearranges the formula, so it does not guess.

Formula: price = (cost + returns and ads + fixed fees × (1 + fee GST)) ÷ (1 ÷ (1 + product GST) − fee % × (1 + fee GST)).

Worked example

Use the defaults. MRP ₹1,000, cost ₹400, product GST 5%, fee 10% of the selling price, fixed fees ₹60, fee GST 18%, returns and ads ₹30.

• Fixed part: ₹400 + ₹30 + ₹60 × 1.18 = ₹500.80.
• Per-rupee margin: 1 ÷ 1.05 − 0.10 × 1.18 = 0.9524 − 0.118 = 0.8344.
• Break-even price: ₹500.80 ÷ 0.8344 = about ₹600.19, which is a 40% discount off the ₹1,000 MRP.
• With a ₹50 target profit: (₹500.80 + ₹50) ÷ 0.8344 = about ₹660.2, a discount of about 34%.

So at a 50% discount (₹500) this product loses about ₹84 per unit on these example numbers, so a platform request for a 50% discount would cost you money. Your numbers will differ, so enter yours.

How should I use the result in a sale?

• Set a floor, not a target. The break-even price is the lowest price you should accept in any sale, including the Great Indian Festival or Big Billion Days. Dates and planning are on our Great Indian Festival 2027 page and the Big Billion Days 2027 page.
• Check the price you advertise. A deep discount works only if the MRP is genuine. Read our note on the prior price rule before you raise an MRP ahead of a sale.
• Use platform tools for exact fees. Marketplace fee calculators in Seller Central and Seller Hub use your category, weight and region. Our Amazon seller fee calculator guide and Flipkart seller calculator help with those.
• Test at the weakest size or variant. The heaviest or slowest-moving variant often has the highest shipping and return cost, so test it separately.

What this calculator leaves out

It leaves out several things that change real profit.

• TCS and TDS. Tax collected at source under GST and TDS under section 194-O affect when you receive cash, not your profit. This is general information, not tax advice. Confirm treatment with a chartered accountant or GST practitioner.
• Price-band fee steps. Some marketplaces change fees at price thresholds. If your discounted price crosses a threshold, run the calculator again with the new fee.
• Referral fee on GST. Whether a marketplace calculates its percentage fee on the price including or excluding GST varies by fee type. Check your fee invoice and adjust the fee % so that the calculator reproduces a real invoice line.
• Coupons and bank offers. If you fund an extra coupon, subtract it as part of "returns and ads".
• Slow stock. A sale price above break-even can still lose money if the stock would have sold later at a higher price.

FAQ

What discount can I give without losing money? Enter your costs and read the "Break-even" row. The percentage shown is the deepest discount off MRP at which profit is zero. Give less than that, and keep a margin above it for returns that come back damaged.

Is GST included in the MRP? In India, MRP is the maximum retail price including all taxes. The calculator therefore treats MRP and the selling price as GST-inclusive and removes GST before working out profit.

Why does the calculator add GST on marketplace fees? Marketplaces charge GST on their service fees. If you can claim that GST back as input credit, you can set the fee GST to 0. If you cannot, it is a real cost. Ask your accountant which applies to you.

Are the default fees real marketplace rates? No. They are round placeholders so you can see how the sums work. Use the figures from your own fee invoice or the marketplace fee calculator, because fees depend on category, price and fulfilment method.

Can I use this for Myntra, Meesho or quick commerce? Yes, if you can express the fees as a percentage plus fixed costs per order. Quick commerce and Myntra often have extra margin terms, so use our Myntra margin calculator or your contract's terms for the percentage.

Does the calculator store my numbers? No. It runs in your browser, so your inputs stay on your device and nothing is sent to Blooprint or anyone else. If you close the page, you will need to enter them again.

Pick the discount, then plan the sale

Once you know your floor price, the next job is choosing which SKUs to push and how much ad budget they can carry. Blooprint is a Bengaluru e-commerce agency that manages seller accounts and ads on Amazon, Flipkart, Myntra and other Indian marketplaces. See marketplace ads management.