Meesho Price &
Profit Calculator
Your ₹40 margin might be a loss. Every return costs you ~₹160. Find your real profit after returns, GST and packaging — and the price you should actually list at.
What one unit costs you (purchase + transport).
Clothing up to ₹2,500 → 5%. Above ₹2,500 → 18% (GST 2.0, Sept 2025).
The shipping price Meesho shows on your catalog. You pay 18% GST on it — ₹10.08 deducted on every delivered order.
The price the customer pays for the product. GST is included inside it. Forward shipping is paid by the customer on top.
Meesho average is 15–25%. Fashion & sarees often run higher.
The full amount deducted from your settlement per return.
Out of every 100 returns, how many come back broken / unsellable? Their full product cost is lost on top of the shipping fee.
🚨 YOU ARE LOSING MONEY
Real average profit per order, all costs included
−₹10.73
What you think you earn
₹40
price − cost
Per delivered order
₹18.25
after GST & packaging
Real profit per order
−₹10.73
after returns too
Max return rate you can survive
9.4%
Your 15% return rate is ABOVE breakeven — every order loses money on average.
Breakeven listing price
₹153
At 15% returns you need at least this price for ₹0 profit.
| Delivered orders (85) — salesforward shipping is paid by the customer | ₹11,900 |
| Product cost (85 units sold)undamaged returns go back to stock | −₹8,500 |
| Shipping GST (18% of ₹56 × 85 delivered) | −₹857 |
| Packaging (100 orders) | −₹500 |
| Return shipping (15 returns × ₹160) | −₹2,400 |
| Damaged returns (1.5 units — product cost lost) | −₹150 |
| GST paid to governmentGST on returned orders is reversed via credit notes | −₹567 |
| Net Loss per 100 orders | −₹1,073 |
* Meesho charges 0% commission and the customer pays the shipping price — but 18% GST on that shipping is deducted from your settlement on every delivered order, and the full return shipping fee on every return. TCS (0.5%) and TDS (0.1%) are also deducted but come back as tax credits when you file returns, so they are not counted as costs here.
Why a “₹40 Margin” Becomes a Loss
A new seller buys a kurti for ₹100 and lists it at ₹140, expecting ₹40 profit per order. Here is what 100 orders actually look like at a normal 15% return rate:
💭 What they expect
100 orders × ₹40 margin = ₹4,000 profit
💸 What actually happens
- • Only 85 orders deliver → ₹11,900 in sales
- • GST inside the price: ~₹567 goes to the government
- • Product cost of 85 units: ₹8,500
- • 15 returns × ₹160 = ₹2,400 burned
- • Packaging for all 100: ~₹500
- = roughly ₹0 — or a loss
The killer is the return rate: returns don't just cancel one sale — each one burns real cash on two-way shipping while earning nothing. That's why a product can be profitable at 10% returns and bleeding money at 18%. Use the calculator's “max return rate you can survive” number before you price anything.
What the Calculator Accounts For
Returns & Damage
Forward shipping is paid by the customer — but every return costs you a shipping fee (default ₹160) plus dead packaging. And broken returns are worse: the full product cost is gone too. Set your own damaged-returns percentage.
GST (2.0 Rates)
Meesho prices include GST. Apparel up to ₹2,500 → 5%, above → 18%. GST on returned orders is reversed via credit notes. Buy with a pakka bill? Purchase ITC is set off — but only up to the GST your sales generate. 0% GST products get no ITC at all.
Real Settlement
Meesho charges 0% commission. TCS (0.5%) and TDS (0.1%) are deducted but refunded as tax credits when you file — so the calculator shows true profit, not scary-looking settlement maths.
Frequently Asked Questions
How much does one return cost a Meesho seller?+
When a customer returns an order, Meesho deducts a return shipping fee from your settlement based on weight — typically ₹140–₹170 for lightweight products including taxes. On top of that you lose the packaging, and broken returns lose the full product cost too. This calculator defaults to ₹160 per return with a separate damaged-returns percentage; change both to match your numbers.
Does Meesho charge GST on shipping?+
Yes. Even though the customer pays the shipping price, Meesho deducts 18% GST on that shipping from your settlement on every delivered order — a ₹56 shipping charge costs you about ₹10 per order. Returns are charged the full return shipping fee (default ₹160, taxes already inside). The calculator asks for your catalog's shipping price and handles both.
Can I get the 18% shipping GST back?+
Only if your product itself charges GST. The shipping GST becomes Input Tax Credit, which can only be set off against GST you collect on your own sales — it is not a cash refund, cannot be withdrawn, and cannot be used to buy anything. If your product is in the 0% GST slab, there is no output GST to set it against, so the shipping GST is a pure cost. To stay safe, this calculator treats the full return deduction as a cost.
Why am I losing money even with a ₹40 margin per product?+
Because the margin only counts delivered orders. Example: cost ₹100, price ₹140. At a 15% return rate, out of 100 orders only 85 deliver. Those 85 earn margin, but you also pay GST out of the price (₹140 includes 5% GST, so ~₹6.67 goes to the government per order) and lose ~₹160 on each of the 15 returns (₹2,400). The ₹40 'margin' becomes roughly zero or negative.
What return rate is normal on Meesho?+
Most Meesho sellers see 15–25% combined returns + RTO. Fashion categories like sarees, kurtis and footwear often run 25–40%. If your return rate is above the calculator's 'max return rate you can survive', you lose money on average even though individual delivered orders look profitable.
How is GST calculated on a Meesho sale?+
The price you list on Meesho is GST-inclusive. If your product is in the 5% slab and sells at ₹140, the taxable value is ₹133.33 and ₹6.67 is GST you owe the government. After GST 2.0 (September 2025), apparel up to ₹2,500 per piece is taxed at 5% and above ₹2,500 at 18%. If you purchase stock with a proper GST bill (pakka bill with your GSTIN), the GST inside your purchase comes back as Input Tax Credit and reduces what you actually pay.
Do I pay GST on returned orders?+
No. When an order is returned, a credit note reverses the GST on that sale, so GST is effectively paid only on delivered orders. This calculator already handles that.
What about TCS and TDS deducted from my settlement?+
Meesho deducts 0.5% TCS (GST) and 0.1% TDS (income tax) from settlements, but both come back as credits when you file your GST and income tax returns. They affect cash flow, not real profit, so the calculator does not treat them as costs.
At what price should I list my product on Meesho?+
Use the 'Find My Price' tab: enter your product cost, GST rate, expected return rate and target profit per order. The calculator works backwards and gives the minimum listing price that hits your target after returns, GST and packaging.