Price to profit. Profit to price.
A two-way calculator for any product or service. See what each unit really earns after CM1, CM2 and CM3, find the price that hits your target profit, and follow it all the way to EBITDA, PBT and PAT.
Shared cost engine
Six inputs drive both calculators. Each layer costs a % of selling price plus a fixed ₹ per unit.
Price → profit
Set the selling price, see the contribution ladder.
Profit → price
Set the CM3 profit you want, get the price you need.
Where each rupee goes
Cost breakdown at your price and at the target price.
At your price
At the target price
Profit bridge: EBITDA → PBT → PAT
Period results (month or any period) for both prices. Don't repeat costs already inside CM3.
Your selling price
Target CM3 price
CM3 is per unit; EBITDA, PBT and PAT are per period at the units entered. Break-even units are the minimum whole units to reach zero EBITDA or PBT. Income tax is applied as a flat rate on positive PBT: 25.17% is the effective rate for domestic companies under section 115BAA; firms, LLPs and individuals pay different rates, so enter your own if needed. GST is not a cost here: it is collected from the customer and paid to the government.
Financial terms, in plain words
| Term | Full form | What it includes |
|---|---|---|
| CM1 | Contribution Margin 1 | Revenue less product cost (COGS), packaging, shipping, fulfilment and return-related direct costs. |
| CM2 | Contribution Margin 2 | CM1 less paid ads, sales commissions, payment gateway fees and marketplace selling fees. |
| CM3 | Contribution Margin 3 | CM2 less allocated team salaries, software, rent, utilities and administration overhead. |
| EBITDA | Earnings Before Interest, Taxes, Depreciation and Amortization | Earnings after operating expenses, before financing costs, tax, depreciation and amortization. |
| PBT | Profit Before Tax | EBITDA minus depreciation, amortization and interest. |
| PAT | Profit After Tax | PBT minus income tax: the profit the business keeps. |
Put each expense in only one layer. Use fixed costs per unit, not monthly totals. All values exclude GST.
Choose what goes into your PDF
Your report is generated from the numbers on this page.
Questions
How do I calculate the selling price for a target profit?
Required price = (target profit per unit + all fixed costs per unit) ÷ (1 − total variable cost rate). Example: at a ₹635 selling price with costs at 95% of price (COGS + logistics 62%, marketing 24%, operations 9%), CM3 is ₹31.75 (5%). To earn ₹63.50 per unit instead, the price must be (63.50 + 0) ÷ (1 − 0.95) = ₹1,270.
What are CM1, CM2 and CM3?
CM1 is revenue minus direct delivery costs (product, packing, shipping, returns). CM2 is CM1 minus marketing and selling costs (ads, commissions, gateway and marketplace fees). CM3 is CM2 minus allocated team, tools and overhead.
What is the break-even price per unit?
The lowest price at which CM3 is zero: fixed costs per unit ÷ (1 − variable cost rate). Below it, every unit loses money.
How are EBITDA, PBT and PAT calculated here?
EBITDA = CM3 per unit × units − extra operating costs. PBT = EBITDA − depreciation and amortization − interest. PAT = PBT − tax at your estimated rate on positive PBT.
Should prices include GST?
No. Enter every price and cost excluding GST so margins reflect what the business keeps. Then pick your GST slab (0%, 5%, 18%, 40% or a custom rate) to see the price the customer pays. GST is collected from the customer and paid to the government, so it is not a cost in CM1 to CM3.
Numbers don't add up?
Book a free 30-minute Growth Leak Audit. We'll find where margin leaks across ads, pricing and operations.