Suppliers quote off purchase price plus a habit-markup, and then wonder why the month ends thin. The real economics per SKU include freight, packing, weighment and transit losses, the financing cost of 30-day credit, and returns, costs that eat quietly. Enter one SKU honestly and this calculator shows your true landed cost and the margin you actually keep.
True landed cost = purchase price + freight per unit + packing + (transit/wastage % of purchase). Effective margin then subtracts the credit financing cost: selling price × interest rate × credit days ÷ 365, and expected returns. Many 12% gross margins are 6% effective margins.
| Purchase price per unit | 100 ₹ |
| Freight & delivery per unit | 4 ₹ |
| Packing / crate cost per unit | 2 ₹ |
| Transit loss / weighment / grading | 3 % |
| Selling price per unit | 125 ₹ |
| Credit period given to buyer | 30 days |
| Annual cost of capital | 15 % |
| Returns / credit notes | 1 % |
Because working capital locked in a buyer's 30-day credit is capital you either borrowed (real interest) or could have deployed (opportunity cost). At 15% annual and 30 days credit, roughly 1.2% of every invoice value silently disappears, on thin HORECA margins that is often a fifth of the profit.
Fresh produce runs 3-8% between weighment differences, grading rejections and transit damage; groceries and packaged goods under 1%. Use your actual returns and credit-note history for the SKU rather than an optimistic zero, the calculator is only as honest as this field.
Three levers, in order: shorten credit (even 30→15 days halves financing cost, and a 1% early-payment discount often costs less than the interest), consolidate deliveries to cut per-unit freight, and re-price the SKUs where you are the reliable supplier of record. Volume without margin is just moving boxes.
