Landing cost and margin calculator
What does a pair really cost by the time it is on your shelf — and what should it sell for?
How landing cost is worked out
Landing cost per pair = (goods value + freight and other charges) ÷ pairs received.
- Goods value = rate × pairs billed, after the supplier's discount.
- Free pairs (a 12 + 1 scheme) are added to the pairs received, so they lower the cost of every pair.
- GST on the purchase is part of your cost only if you cannot claim input credit — for example a composition dealer.
From cost to MRP
Selling price before GST = landing cost + your margin. GST is then added at the rate for that value — 5% up to ₹2,500, 18% above — to give an MRP that includes tax.
Example
120 pairs at ₹450 with 10 free pairs and ₹600 freight: (₹54,000 + ₹600) ÷ 130 = ₹420 a pair. With 40% margin the price before GST is ₹588; with 5% GST the MRP is about ₹618.
Questions
Is margin worked on cost or on selling price?
Here it is on cost (a mark-up): 40% on a cost of ₹420 adds ₹168. The markdown and profit calculator shows margin on the sale value.
Should freight GST be included?
The calculator applies the purchase GST rate to goods and freight together, as when the supplier adds freight on the bill. Use the figures from your own bill if they differ.
Landing cost on every purchase
Padam works out landing cost per pair from each supplier bill and suggests the selling price.