Import Export Business Profit Calculator – What You Need to Know Before Shipping

Exporting in India is a profitable venture, however, it should be calculated correctly to get your profits. There are too many companies that rush into shipping without knowing the hidden costing, and thus they do not make profits, but rather incur losses.

In this guide, we are going to simplify the profit formula, significant cost considerations, and a sample calculator of your next export shipment.


Import Export Business Profit Calculator – What You Need to Know Before Shipping


Step 1: Know Your Total Product Cost (TPC)

Yours TPC:

  • Procurement cost or manufacturing cost
  • Packing or working
  • Labeling and branding

Example: Let us say that you sell 1 unit of herbal tea at 50 (factory price), then you incur an expenditure of 10 (on packaging and labeling), then TPC = 60.


Step 2: Add Export-Related Costs

These include:

  • Freight (Air/Sea)
  • Custom clearance fees
  • CHA fees
  • Port charges
  • Insurance
  • Export documentation
  • Local transport

Example: You logistics cost can be 12,000 = 12 per unit, as it is given 1,000 units.


Step 3: Calculate Your Export Selling Price (ESP)

This will be the ultimate cost that your buyer will incur.

  • Free on Board (FOB)
  • CIF (Cost, Insurance, Freight)
  • Ex-Works (EXW)

Hint: Select terms of pricing that divides shipping cost with the buyer to enhance profits.


Assuming that your ESP = 120/ unit, and total cost (TPC + Export Costs) = 72, then:


Unit profit = 48

Total Profit = 48(Rs) x 1000 = 48000(Rs)


Export Profit Template


Profit = ESP - [product Cost + export Costs]


The Important Liabilities to be Wary of Hidden Charges

  • Exchange rate volatilities
  • Customer returns or refusal to pay Buyer chargebacks or delays
  • Port detention/demurrage
  • Local services GST
  • Charges of banking & LC processing
  • These should always be factored in as buffer of 3-5%.


Pro Tips to Make More Profits on Exports

  • The cost of unit shipping is lower with bulk orders
  • Bargain with freight forwarders
  • Send proforma invoices in real time using WhatsApp
  • Sell improved packaging at high prices


Final Thoughts

An export costing mistake that is not very big can easily make a good deal an unprofitable one. Apply the above-mentioned profit calculator approach and make sure you seek quotations of various vendors every time you are about to finalize shipping.


Need Assistance with the Quote of Your First Order?

👉 Visit: www.vskglobaltrade.co.in 

📲 Ask Us on WhatsApp: Clicks Here


Published by VSK Global Trade – Expert Support for Indian Exporters.



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