Model your full channel P&L — from cost of goods to retail shelf price. See exact margins across D2C, wholesale, and distributor channels in one view.
| Channel | Selling Price | Gross Profit/Unit | Net Margin % | Monthly Revenue | Monthly Profit | Health |
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This calculator models the unit economics of a packaged food or FMCG product across three distinct sales channels — Direct-to-Consumer (D2C), wholesale distribution, and traditional retail trade. Most FMCG founders price their product based on one channel and are surprised when the economics collapse in another. This tool shows all three simultaneously so you can make informed decisions about your channel mix before committing to an MOQ or a distributor agreement.
The calculation starts from your fully loaded COGS — raw material, packaging, manufacturing or co-packing cost, overhead allocation, and outbound logistics. GST is then applied to the COGS to arrive at your tax-adjusted cost base. From there, the tool models what each channel retains and what it passes on:
In D2C, you sell at your website price (typically equal to or close to MRP). The deductions are payment gateway fees (1.75–2.9% in India), shipping cost per order, customer acquisition cost (CAC — what you spend on ads or marketing to generate one order), and platform or technology costs. What remains after these deductions minus your COGS is your true D2C net margin per unit. This is typically the highest-margin channel but requires the most working capital and marketing spend to sustain volume.
When selling through distributors, you sell at a distributor price — typically MRP minus 30–40% to allow room for their margin, stockist margin, and retailer margin. The distributor takes 10–20%, the stockist takes 5–8%, and the retailer takes 20–30% depending on the category. This calculator applies the distributor margin to your selling price and derives what you actually invoice at. Your net margin in this channel is lower but your per-unit logistics cost is also lower since you're shipping in bulk.
Traditional trade (kirana stores, general merchants) involves a slightly different margin structure than modern trade. Retailers in this channel typically take 15–25% margin on MRP and expect shorter credit periods. The calculator models this separately since many brands find that traditional trade, despite lower per-unit margins than D2C, delivers significantly higher volumes with lower marketing spend.
A typical packaged snack brand operating across all three channels loses 40–55% of MRP to the distribution chain before COGS is even subtracted. This is not a bug — it is how Indian FMCG distribution is structured. The key insight this calculator provides is your blended margin — what you actually make per unit when you weight each channel by your expected sales volume split. A brand doing 60% D2C, 30% wholesale, and 10% traditional trade will have a very different blended margin than one doing 10% D2C and 90% traditional trade, even with identical COGS and MRP.
Established large FMCG brands (Britannia, Dabur, Marico) operate at 10–18% net margins after all costs including marketing. Early-stage D2C food brands with premium positioning and strong direct channels can achieve 25–35% net margins on D2C revenue specifically. The benchmark to watch is contribution margin per unit — if this is negative in any channel, you are paying customers to buy from you and volume will make the situation worse, not better. If contribution margin is positive but below 20%, your pricing or cost structure needs attention before you scale.
Indian FMCG distributors typically take 10–20% margin on the distributor price. Stockists take another 5–8%, and retailers take 20–30% depending on category and geography. Premium health food categories often have compressed retailer margins of 15–20% since the absolute rupee value is higher.
Gross Margin = (Net Selling Price – COGS) ÷ Net Selling Price × 100. Net selling price is what you invoice at (after trade discounts), not MRP. COGS includes raw material, packaging, co-packing or manufacturing cost, and direct inbound logistics.
If you are GST-registered and claim Input Tax Credit (ITC), GST paid on inputs is recoverable and should not be included in COGS for margin calculation purposes. If you are not registered or in a composition scheme, GST on inputs becomes a real cost and should be included.
Gross margin subtracts only COGS from revenue. Contribution margin also subtracts variable selling costs — commissions, shipping, payment fees, and variable marketing spend. Contribution margin is the more relevant number for channel-by-channel decisions since it tells you what each sale actually contributes toward fixed costs and profit.
Disclaimer: This calculator is for planning and directional analysis only. Margin benchmarks are based on publicly available FMCG industry data and may vary significantly by product category, geography, and negotiated trade terms. Always validate with your actual cost data and consult a CA or financial advisor before making pricing or distribution decisions.