Daraz Profit Calculator: Commission, VAT & Net Margin (2026)

Why Thousands of Daraz Sellers Miscalculate Their Real Profit

Selling on Daraz (Alibaba Group's leading marketplace in South Asia across Pakistan, Bangladesh, Sri Lanka, and Nepal) is one of the most accessible ways to start an e-commerce business. However, thousands of beginners end up losing money every month because they only subtract their wholesale purchase cost from the selling price, completely overlooking the hidden layers of marketplace deductions.

When you sell an item on Daraz, your payout reflects multiple deductions:

1. Category Marketplace Commission (4% to 17%)
2. Payment Processing Fee (1.25% to 1.75%)
3. Provincial Sales Tax / VAT on Commission (13% in Sindh, 16% in Punjab/KPK)
4. Mandatory Packaging Flyer & Box Costs (Rs. 30 to Rs. 70 per parcel)
5. Seller-Funded Shipping Subsidies & Return Penalties

Use our Daraz Profit Calculator to instantly calculate your exact take-home profit before listing an item.

The Complete Daraz Fee Breakdown (2026)

Daraz Profit Formula:
Net Profit = Selling Price 
           - Product Purchase Cost
           - Daraz Category Commission
           - Payment Processing Fee (1.25%)
           - Sales Tax / VAT on Daraz Fees (13% - 16%)
           - Packaging & Flyer Material Cost
           - Seller-Funded Shipping (if applicable)

Net Margin (%) = (Net Profit / Selling Price) × 100
ROI (%)        = (Net Profit / Total Direct Costs) × 100

1. Daraz Category Commission Rates

Daraz charges a percentage-based commission on the final selling price of each product:

Category                                Typical Commission Rate
Mobiles & Tablets                       3.5% – 5.0%
Electronic Accessories (Cables, Cases)  12.0% – 15.0%
Health & Beauty (Skincare, Makeup)      11.0% – 14.0%
Fashion & Apparel                       14.0% – 17.0%
Home & Living                           12.0% – 15.0%
Groceries & Gourmet                     6.0% – 8.0%
Watches, Sunglasses & Jewelry           14.0% – 17.0%
Toys, Kids & Babies                     10.0% – 13.0%
Automotive & Motors                     9.0% – 12.0%

2. Payment Handling Fee (1.25%)

Daraz applies a 1.25% payment fee on the gross order value (including customer-paid shipping) to cover Easypaisa, JazzCash, debit/credit cards, and Cash on Delivery (COD) cash handling.

3. Provincial Sales Tax (PST / VAT on Commission)

A major point of confusion for sellers is the 16% Punjab Sales Tax (PRA) or 13% Sindh Sales Tax (SRB). Note: This tax is charged on Daraz's service fees, NOT on your entire product price.

Tax Example:
If Daraz Commission + Payment Fee = Rs. 150
Then 16% Provincial Tax = Rs. 150 × 0.16 = Rs. 24.00
Total Daraz Cut = Rs. 150 + Rs. 24 = Rs. 174.00

Real-World Daraz Pakistan Example

Let's calculate the real numbers for a wireless earbud set listed on Daraz Pakistan:

Product: Wireless Earbuds
Selling Price:           Rs. 1,500
Wholesale Purchase Cost: -Rs. 700
Daraz Commission (14%):  -Rs. 210
Payment Fee (1.25%):     -Rs. 18.75
Tax on Fees (16% PST):   -Rs. 36.60
Daraz Approved Flyer:    -Rs. 40.00
───────────────────────────────────
Total Combined Costs:    Rs. 1,005.35
Net Profit per Unit:     Rs. 494.65
Net Profit Margin:       33.0%
ROI on Investment:       66.8%

At 100 orders per month, this single item generates Rs. 49,465 net profit.

Recommended Tools for Daraz Sellers

To streamline your e-commerce operations and product hunting:

• ProfitTool Daraz Profit Calculator: Fast, free browser-based calculation with real-time break-even price analysis.
• ProfitTool Profit Margin Calculator: Model markup percentages and target margins across multi-channel stores.
• ProfitTool Amazon FBA Calculator: Compare international FBA margins when expanding globally.
• Sellerdash Daraz Calculator: A popular local Chrome extension and suite for Daraz product hunting and sales tracking in Pakistan.

4 Rules to Protect Your Daraz Margins

1. Calculate the Break-Even Price First: Always know the absolute minimum price you can discount to during 11.11, 12.12, and Flash Sales.
2. Account for Return Rates: In categories like apparel and shoes, return rates can reach 10–15%. Factor return packaging losses into your base markup.
3. Use the Discount Calculator: Test voucher codes (e.g. Rs. 100 off on Rs. 1,000 spend) before launching seller vouchers to prevent accidental loss-making promotions.
4. Bundle Accessories: Pair high-margin accessories (cables, cases) with lower-margin electronics to increase your Average Order Value (AOV).