Product price calculator

What this tool is for

It works backwards from your cost to the MRP you should print, covering everything that sits between the two: your profit, the shop's margin, marketplace fees, GST and the discounts you expect to give. It can also run forwards, from an MRP to the most a piece may cost you.

Who it's for: small makers and brands setting an MRP for a pack; anyone selling through shops that take a margin; and sellers matching a rival's price without knowing whether it leaves them anything.

From cost to MRP in four steps

An MRP (maximum retail price) is the highest price anyone may charge for a packaged product in India, including all taxes. The Legal Metrology (Packaged Commodities) Rules, 2011 require it on every retail pack, and selling above it is an offence. So the MRP has to cover everything between your cost and the customer: your profit, any shop’s margin, marketplace fees, GST and the discounts you expect to give.

This tool works backwards from what you need:

1. Your price. Cost plus your profit: a 40% markup on ₹250 is ₹350; a 30% margin on ₹250 is ₹250 ÷ 0.7 = ₹357.
2. The shop’s share. If dealers sell it, they keep a margin of the selling price, so your price is grossed up: ₹350 ÷ (1 − 20%) = ₹437.50.
3. GST. Add the GST rate on top: ₹350 × 1.18 = ₹413.
4. Discount room. If you expect to sell at 10% off, divide by 0.9: ₹413 ÷ 0.9 = ₹459. Round up to a familiar ending: ₹459.

At full MRP you earn more; at the planned discount you still earn your target. That is the whole idea of discount room.

Markup or margin?

Markup adds a percentage to your cost; margin is the percentage of the selling price you keep. A 40% markup is only a 28.6% margin. Many small makers price with a markup and then wonder why the margin feels thin. Pick whichever you think in; the tool shows both.

Revathi’s pickles in Kallakurichi

Revathi makes mango and lime pickles at home and sells 300 g jars through grocery shops around Kallakurichi.

• Jar, pickle, label and delivery cost her ₹70 a jar.
• She wants a 40% markup: ₹98 a jar for her.
• The shops keep 20% of the selling price, so she must charge them ₹98 ÷ 0.8 = ₹122.50.
• Pickles are taxed at 5% GST (check your product’s rate): ₹128.63.
• Shops give 10% off at festivals: ₹128.63 ÷ 0.9 = ₹142.92, so she prints ₹149.

At ₹149 she earns about ₹32 a jar at 10% off (her target was ₹28), and about ₹44 at full MRP. A rival jar of the same size sells at ₹135. Turning on A rival’s price shows Revathi is about 10% above it, and that at ₹135 she would make only about ₹23 a jar. That helps her decide whether her homemade label is worth the extra.

Endings that sell

Shelves in India are full of ₹99, ₹149 and ₹199. A price that ends in 9 reads as lower than the round number above it. This tool always rounds up to the ending, never down, so the familiar price adds a little profit instead of costing you. Choose Exact if your trade expects round prices, such as ₹150.

Selling on a marketplace

Marketplaces take a commission (often 5–20% of the customer’s price, depending on the category), a payment fee (about 2%) and per-order charges for shipping and closing. Turn on Marketplace fees and type your own figures from the seller dashboard: they change by category and over time. The MRP rises to keep your profit.

Common mistakes

• Printing an MRP without GST in it. The MRP must include all taxes.
• Forgetting the shop’s margin. Your “selling price” is what the shop pays you, not the MRP.
• Leaving no room for discounts, then selling at a loss on every offer day.
• Pricing far above a rival without a reason the customer can see.