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Free tool

Price for a target margin

Start from what the item costs you and the margin you want to keep. The tool gives the price before GST, the GST and the price your buyer pays, rounded up to a price point if you want one.

₹

Include freight and loading if you pay them.

%
GST rate
Round the price the buyer pays

Rounding always goes up, so your margin never drops below the target.

Result

Selling price before GST
₹1,133.33
GST at 18%
₹204.00
Price the buyer pays
₹1,337.33
Profit per unit
₹283.33
Margin at this price
25.0%

Selling price = cost ÷ (1 − margin). For goods sold in packs to consumers, the printed MRP must include all taxes, so it can be no lower than the price the buyer pays.

Next step in MatruOS

MatruOS opens the item with this cost, price and GST rate, and keeps your margin in view each time the purchase cost changes.

Set this price on your item in MatruOS

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Keep this result

Method

How this is worked out

Every figure the tool uses is listed here. Assumptions are fields in the tool, so you can change them to match your business.

  1. Selling price before GST = cost ÷ (1 − margin).
  2. Price the buyer pays = selling price × (1 + GST rate). Rounding moves this price up to the point you choose, and the price before GST is worked back from it, so the margin can only go up.
  3. For packaged goods sold to consumers, the printed retail sale price (MRP) includes all taxes.

General information to help you decide, not tax, legal or financial advice. Check figures that affect a filing with your CA. Questions about a result: consulting@codecolonies.com.

Questions

Questions people ask

Why is adding the margin percentage to cost wrong?

Adding 20% to cost gives a 20% markup, which is only a 16.7% margin. To keep a 20% margin, divide cost by 0.8.

Does rounding to ₹99 cut my margin?

Not here. The tool always rounds up, so the margin at the rounded price is the same as your target or a little above it.

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