Markdown and profit calculator
Before you put a pair on sale, see what is left after the discount and the GST.
How it is worked out
- Sale price = MRP − discount. The MRP includes GST.
- GST inside the price is 5% when the sale price is ₹2,625 or less, 18% above that.
- Profit per pair = sale value after GST − landing cost.
- Margin on sale value = profit ÷ sale value after GST.
Example
MRP ₹1,999, landing cost ₹1,100, 30% off: sale price ₹1,399.30. GST inside at 5% is ₹66.64, so the shop gets ₹1,332.66 and the profit is ₹232.66 a pair.
A pair that has not sold in a season rarely gets better with age. A smaller profit now usually beats the full margin on a pair that never sells — see broken size runs and dead stock.
Questions
Why does the landing cost not include GST?
A registered shop claims the GST paid on the purchase as input credit, so it is not a cost. If you cannot claim it, type the cost including GST.
Can a discount change the GST rate?
Yes. A pair with an MRP above ₹2,625 can fall into 5% when discounted, which leaves you more than you would expect.
Markdowns suggested for you
Padam lists aged stock and broken runs with a suggested discount, and stops a sale below landing cost unless the owner approves.