How do I calculate my real profit on Meesho and Flipkart?
Your real profit is what the marketplace actually paid you for an order, minus what the product cost you, your packing and your ads. The payment amount is already after the marketplace’s fees, shipping and return charges, so you do not subtract those again. Count every order you shipped, not only the delivered ones, because returns and RTOs lose money too, and remember that TCS and TDS are held back for tax, not a cost.
By the MyrrenReco Team · Updated · Checked on
What is the formula for real profit?
Real profit is not the selling price, and it is not the amount that lands in your bank. It is what is left after the marketplace has been paid and you have paid for your own costs. Work it out for every order you shipped, then add it up.
What is already taken out of the settlement amount?
The settlement amount in your Payment Report is already net of every charge the marketplace made on that order. Do not subtract any of these a second time, or your profit will look smaller than it is:
- Commission, fixed or collection fees, and the shipping charge.
- Return shipping and any other return charge on that order.
- On Flipkart, the GST on the marketplace’s fees, which is shown as its own line.
- The TCS and TDS held back for tax.
- Ads, only if your Payment Report shows the ad cost as a deduction. If you pay for ads separately, count them yourself.
Which costs do I subtract myself?
- Product cost: what one unit cost you. Leave out any GST you can claim back.
- Packing: the bag, tape and label for one order. It is lost on every return and every RTO.
- Ads you pay outside the marketplace payment.
- Anything else that belongs to the order, such as stock you could not sell again.
If you are GST-registered, the settlement amount still holds the GST on your sale, and that money belongs to the government. Leave it out of your profit. The free calculators below take it out for you. If you are not registered, ask your accountant what to count.
Why do returns and RTO change my profit per order?
Profit on a delivered order flatters you, because not every order you ship is delivered and kept. A customer return reverses the sale and usually adds a return charge, and your packing is lost. An RTO never sold, but your packing is lost too. Both pull down the profit per order shipped.
Our returns vs RTO guide explains the difference and what each one costs, so this guide only shows where they fit in the total.
How do I calculate real profit on Meesho?
- Commission: Meesho’s supplier pricing page says it charges 0% commission across all categories, with no collection fee and no cancellation penalty.
- Shipping: it is deducted for each order, and Meesho shows it with GST included.
- RTO: the same page says Meesho does not charge a return shipping fee for RTOs, so an RTO costs you your packing and the sale you did not make.
- Customer return: the sale is reversed and a return shipping charge is deducted. Both show on that order’s lines.
- Where to look: Supplier Panel → Payments → Download → Payments to Date, on the sheet “Order Payments”. Use the Final Settlement Amount column, and add up every line with the same Sub Order No.
Payments are listed by payment date, so a return can show up in the next month’s Payment Report. Download that one too before you call a month finished. For one product, the free Meesho profit calculator is a quick Meesho real profit calculator, and the guide on a lower Meesho payout explains each deduction.
How do I calculate real profit on Flipkart?
- Commission: Flipkart’s Fees and Commission page says products priced below ₹1,000, and the whole Fashion category, carry 0% commission. Above that it depends on your category.
- Other fees, such as the fixed fee and shipping, depend on your rate card in Seller Hub, so check your rate card for the amounts.
- GST on fees: Flipkart shows its fees before GST, with the GST on them as a separate line. If you are GST-registered, that GST can usually be claimed as input tax credit, so ask your accountant whether to count it as a cost.
- Returns: what is kept and what is reversed depends on the fee and the type of return, so read the lines for that order.
- Where to look: Seller Hub → Reports → Payment Reports → Settled Transactions. Find each order by its Order Item ID, and add up every line for it.
One Flipkart order can hold several items, and each is paid and returned separately, so work out profit per item. The free Flipkart profit calculator is a quick Flipkart real profit calculator for one product, and the guide on Flipkart return deductions shows how to read a returned order.
Are TCS and TDS a cost?
No. GST TCS is 0.5% and income-tax TDS is 0.1%, both on the taxable value of the sale (the price without GST). TCS is credited to your GST electronic cash ledger, and TDS can be claimed against your income tax.
They are already out of the settlement amount, so they make the payment smaller, but they are money held back, not money lost. When you add up your profit, add them back, or at least do not count them as a loss.
What mistakes make real profit look wrong?
- Using the order value instead of the settlement amount. The buyer’s price is not what you were paid.
- Subtracting the marketplace’s fees from the settlement amount a second time.
- Counting only delivered orders, and ignoring returns and RTO.
- Treating TCS and TDS as a loss, when they are credited back to you.
- Forgetting packing and ads, which are real costs on every order, including the ones that come back.
- Judging a month by the Payment Report of that month only, when returns and late payments land in the next one.
Is there a free Meesho or Flipkart real profit calculator?
Yes. Both calculators below are free. You type your selling price, your costs and how many orders come back, and they show the profit on a delivered order and the average profit per order you ship once returns and RTO are counted.
Questions
Why is my profit lower than my bank payout?
The payout still contains the GST on your sale, which belongs to the government, and it has not paid for your product, packing or ads yet. Profit is what is left after all of those.
Should I subtract Meesho or Flipkart fees from the settlement amount?
No. The settlement amount is already after every marketplace charge on that order, so taking them off again counts them twice.
Are TCS and TDS a loss?
No. TCS is credited to your GST electronic cash ledger and TDS can be claimed against your income tax. They are money held back, not a cost.
Why is my real profit lower than the calculator showed?
The calculator works on the numbers you type. Real orders add returns, RTOs, claims that are still open, deductions you did not plan for and ads. Compare it with your Payment Report order by order.
Fee and tax rules from: Flipkart Seller Hub — Fees and Commission; Meesho Supplier — Pricing & Commission; GST Council — Notification 15/2024-Central Tax (TCS); Finance (No. 2) Act 2024 — TDS on e-commerce. Last verified .