Marketplace Seller Settlement & Contribution Calculator

Reviewed by CA Nikhil Gupta · Last reviewed 8 October 2026

A seller can show positive sales and still receive a smaller bank credit because marketplace commissions, payment fees, returns, withheld taxes and reserves affect settlement differently. This calculator separates cash timing from contribution, so a GST TCS amount or income-tax TDS deduction is not incorrectly treated as a fee. It does not determine tax applicability or statutory rates.

Calculate your scenario

Sample values are editable. No inputs are transmitted to any server by this page.

Your results

What this calculator does

Reconcile gross marketplace sales, refunds, commissions, payment fees, tax withholdings, reserves, and cash settlement without treating withheld taxes as.

What you enter

Gross order collections / sales (₹) — example value: 500000
Returns and refunds credited (₹) — example value: 40000
Embedded output tax on retained sales (₹) — example value: 30000
Marketplace commission base (₹) — example value: 400000
Marketplace commission rate (%) — example value: 12
Other marketplace fee (₹) — example value: 3000
Payment-processing fee base (₹) — example value: 450000
Payment-processing fee rate (%) — example value: 1.5
Fixed payment fee (₹) — example value: 600
Fulfilment and shipping fees (₹) — example value: 15000
Ad spend charged in settlement (₹) — example value: 10000
Chargebacks, lost/damaged charges (₹) — example value: 2000
GST TCS actually withheld (₹) — example value: 2500
Income-tax TDS actually withheld (₹) — example value: 1800
New rolling reserve withheld (₹) — example value: 5000
Earlier reserve released (₹) — example value: 1000
Product purchase / manufacturing cost (₹) — example value: 220000
Other variable operating costs (₹) — example value: 12000

Results are an illustrative estimate from the figures entered, not advice, and they do not replace your contract terms, the current law or standard, or professional review of the facts.

Common questions

Why is the marketplace payout below gross sales?

Because commissions, payment fees, refunds, withheld taxes and cash reserves can reduce the immediate bank credit; only some of these reduce profit.

Should I deduct GST TCS as a selling expense?

No. The calculator treats collected GST TCS as a withholding or credit item, not an operating fee; actual ledger treatment needs professional review.

Does the tool calculate e-commerce tax deduction automatically?

No. Enter the actual deducted amount from the applicable statement; statutory thresholds and rates need independent current-law validation.

How are reserve releases treated?

Previously withheld reserve releases increase current cash payout but do not create a second sale or new contribution.

Can my contribution be positive when cash settlement is low?

Yes. Withheld credits and reserves reduce cash temporarily without necessarily reducing operating contribution.

Finin2min 2-minute explanation

How to use this calculator

Take one settlement cycle from the marketplace portal and copy gross sales, refunds and statement components. Use the platform's stated bases for ad-valorem commission and payment charges, which may differ from taxable value or customer-paid amounts. Enter withheld TCS/TDS as actual statement amounts, not presumed percentages. Confirm whether advertising, GST on fees, reversals, chargebacks and shipping are already included in another line to avoid double counting. Compare the resulting cash payout against your bank credit. A difference may indicate timing, previous-cycle refunds, reserve releases, EMI/reimbursements or an omitted ledger component.

Calculation logic and formulas

Retained sales = gross sales − refunded sales.

Commission = stated commission base × commission rate + fixed fee; payment fee follows its independent base.

Bank settlement = retained sales − marketplace/payment/fulfilment/advertising/claims − TCS − TDS − reserve withheld + previously released reserve.

Operating contribution = retained sales − embedded sales tax − operating deductions − COGS − other variable operating cost. TCS and TDS are not subtracted again.

Bridge reconciliation = retained sales − (operating deductions + tax withholdings + reserve movement + bank payout) = 0, subject to floating-point rounding.

Worked example in rupees

Example: gross orders ₹5,00,000, refunds ₹40,000 and embedded sales tax ₹30,000 result in retained sales ₹4,60,000 and sales before that tax ₹4,30,000. Marketplace commission of 12% on a separately defined ₹4,00,000 base plus ₹3,000 fixed charge is ₹51,000; payment fee of 1.5% on ₹4,50,000 plus ₹600 is ₹7,350. With ₹15,000 fulfilment, ₹10,000 advertising, ₹2,000 claims, ₹2,500 GST TCS, ₹1,800 income-tax TDS, ₹5,000 reserve held and ₹1,000 reserve released, the bank settlement is ₹3,66,350. COGS ₹2,20,000 and other variable cost ₹12,000 produce operating contribution of ₹1,12,650. TCS/TDS and reserve are reconciled as timing/balance-sheet deductions, not expenses.

Important assumptions and frequent mistakes

GST TCS, income-tax TDS and reserve holds affect bank settlement but are not automatically business expenses.

Do not infer present GST or income-tax rates from a platform's payout percentage; verify jurisdiction, tax year and exemption conditions.

A marketplace commission can be calculated on a platform-defined base that is not identical to gross customer collections.

Refunds and tax adjustments may appear in different payout cycles; ensure the selected period reconciles.

Frequently asked questions