Charging the customer PKR 100 for delivery does not necessarily recover PKR 100. If a percentage fee applies to that receipt, part of the charge leaves before it can pay the courier. The Shipping Subsidy Calculator isolates this small but important part of the order.
Separate the bill from the amount collected
Enter actual shipping cost PKR 200 and customer shipping charge PKR 100. With an illustrative 10% fee on the shipping receipt, only PKR 90 remains. The seller funds PKR 110 of the courier bill.
The shipping contribution is negative PKR 110. That same difference appears as a positive subsidy because the two labels describe opposite sides of the gap. The receipt did help pay for delivery; it simply did not cover the whole cost.
The recovery charge must cover its own fee
To recover PKR 200 after a 10% deduction, the minimum shipping charge is about PKR 222.22. Dividing the cost by the remaining 90% gives the answer. Charging PKR 220 would leave PKR 198 after the fee and still fall short.
Display rounding does not change the underlying calculation. If your checkout requires whole rupees, test the rounded customer charge again and inspect the remaining subsidy instead of assuming that every rounding direction fully recovers cost.
Free shipping moves the delivery expense elsewhere
A zero customer shipping charge leaves the entire entered courier cost to be funded by the seller. That can still fit an order price, but the product margin must cover it. Use Target Selling Price Calculator to include delivery when working towards an overall margin.
If net shipping receipts exceed the delivery cost, the subsidy becomes negative. This means a shipping surplus within this narrow calculation. Product cost, packaging, refunds and advertising still determine whether the complete sale earns a profit.
Choose an input that matches the actual fee basis
This tool applies the entered percentage to the shipping charge. A provider charging a fixed fee, a different basis or tax on its service charge needs a fuller fee calculation. Marketplace Fee Calculator lets you describe those separate rows.
Check whether your actual shipping cost already includes packaging or COD service before adding those expenses elsewhere. Consistent cost scope matters more than making the shipping line look balanced. Keep the customer charge and courier bill as two separate records for later reconciliation.
