Resale Price and Margin Calculator for Saree and Fabric Sellers
Works out the selling price, profit per piece, markup and break-even point from a wholesale price, freight, GST and the margin you want.
- Landed cost per piece = wholesale price + freight per piece + packing and other costs (+ the purchase GST, if you are not GST registered).
- Selling price for a margin = landed cost ÷ (1 − margin %). For a 30% margin on a ₹550 landed cost, the price is about ₹786 before GST.
- Margin and markup are different: a 30% margin is a 43% markup on cost.
- Landed cost per piece
- ₹550
- Profit per piece
- ₹236
- Margin / markup
- 30% / 42.9%
- Money put in
- ₹11,000
- Profit if all sell
- ₹4,714
- Break-even
- 14 of 20 pieces
How the resale price and margin calculator works
Landed cost is everything a piece costs you to get on your shelf: the wholesale price, its share of the freight, and packing, tags or stitching. If you are not registered for GST, the GST on the supplier's bill is also a cost, because you can't claim it back.
Selling price before GST = landed cost ÷ (1 − margin ÷ 100). Margin is profit as a share of the selling price; markup is profit as a share of the cost. Pricing with markup when you mean margin is the most common reason resellers earn less than they planned.
A GST-registered seller adds GST to the selling price and claims back the GST paid on purchase. The customer pays the price plus GST. Check the right GST rate for your product with your CA; the calculator lets you change it.
Break-even pieces = total money put into the order ÷ selling price per piece: the number you must sell before the rest is profit.
Worked example
| Wholesale price | ₹650 per piece |
|---|---|
| Pieces | 40 |
| Freight | ₹1,200 |
| Other cost | ₹25 per piece |
| GST registered | Yes |
| Purchase GST | 5% |
| Margin wanted | 35% |
| GST on sale | 5% |
| Landed cost per piece | ₹705 |
|---|---|
| Selling price before GST | ₹1,085 |
| Customer pays with GST | ₹1,139 |
| Profit per piece | ₹380 |
| Markup on cost | 53.8% |
| Break-even | 27 pieces |
Frequently asked questions
How do I calculate the selling price from a margin?
Divide the landed cost by one minus the margin. For a 30 percent margin, divide by 0.7. A saree that costs you 700 rupees landed should sell for 1,000 rupees before GST to earn a 30 percent margin.
What is the difference between margin and markup?
Margin is profit divided by the selling price; markup is profit divided by the cost. A piece bought for 700 and sold for 1,000 has a 300 rupee profit: a 30 percent margin but a 43 percent markup.
What margin do saree resellers usually keep?
It varies a lot by channel. Online resellers who post on WhatsApp or Instagram often work on thinner margins than shops with rent and staff. Work out your own costs first, then pick the margin that covers them and still leaves profit after returns and discounts.
Should I include GST in my cost?
If you are GST registered, no: the GST on your purchase comes back as input credit, and you charge GST on your sale. If you are not registered, yes: the GST you paid is part of your cost and you can't charge GST to customers.
What does break-even mean here?
It is the number of pieces you must sell at your selling price to get back all the money you put into the order, including freight and other costs. Every piece sold after that is profit.
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