FMCG Profit Margin Calculator
Break down margins at every level — manufacturer, distributor, and retailer
Frequently Asked Questions
What is a typical FMCG distributor margin in India?
Distributor margins for branded packaged food in India typically range from 8–12% of MRP in general trade. Modern trade distributors earn 4–8%, while super-stockists add 2–4% on top. Your net realisation shrinks further with trade spend — promotional schemes, primary/secondary freight, and breakage allowances — which often total another 3–5% of net sales.
How do I calculate manufacturer's net realisation from MRP?
Start with MRP → subtract GST to get ex-GST price → deduct retailer margin (15–20% of MRP) → deduct distributor margin (8–12% of MRP) → deduct trade spend. What remains is manufacturer's net realisation per unit. Subtract COGS (cost of goods sold) to get your profit. This calculator shows every step in the price waterfall.
What is the difference between gross margin and net margin for an FMCG brand?
Gross margin = (Net Sales − COGS) / Net Sales. It's the factory-gate profit before distribution, marketing, and overheads. Net margin deducts all operating expenses. Healthy Indian packaged food brands target 40–55% gross margins and 10–20% EBITDA margins. Net profit margins after tax are often 5–12% for established FMCG companies.
How much does a kirana retailer earn on an FMCG product?
Kirana and general trade retailers typically earn 15–25% of MRP. Modern trade supermarkets earn 18–30% when listing fees, promotional contributions, and shrinkage are included. This is why brands selling D2C have structurally higher gross margins — but customer acquisition costs (CAC) via digital marketing often neutralise the advantage at scale.