A distributor ROI calculator works out how much profit a distributor is actually making back against everything they have tied up -- stock, outstanding payments, running expenses. It's for companies and distributors who want to know whether a distributor relationship is profitable, not just whether sales are growing.
The problem
A distributor's sales number alone doesn't say whether the relationship is profitable for them, or worth the company's continued investment in that territory. A distributor can look busy -- high billing, steady orders -- while quietly running a loss once stock, outstanding and running costs are accounted for.
Try the calculator
Pre-filled with example numbers below -- edit any field and the results update live.
Pre-filled with example numbers, not real data. Nothing you type here is sent to a server or stored anywhere -- it's calculated entirely in your browser.
Investment
Companies define this differently -- pick whichever matches how you think about it.
Monthly expenses
Gross profit inputs
Investment
₹11,00,000
Net profit
₹1,07,500
ROI (period / annualised)
9.8% / 118.9% annualised
Show the formula
Gross profit = (billed value × margin %) + (billed value × cash discount %) + (billed value × others discount %) + schemes earned − credit notes issued (received)
Net profit = Gross profit − total expenses
Investment = stock value ± payment outstanding (sign set by the toggle above) + credit notes issued to retailers
ROI % = Net profit ÷ Investment × 100
Annualised ROI % = ROI % × (365 ÷ period length in days)
If Investment is zero or negative, ROI isn't a meaningful ratio -- shown as a message instead of a number, same as the portal.
How this is worked out, step by step
- Investment = stock value, plus or minus payment outstanding (your choice via the toggle), plus credit notes issued to retailers not yet reimbursed.
- Expenses = manpower, godown/office, electricity, transport and miscellaneous costs for the period.
- Gross profit = distributor margin (billed value × margin %) + cash discount + others discount + schemes earned − credit notes received.
- Net profit = Gross profit − Expenses.
- ROI % = Net profit ÷ Investment × 100, with an annualised figure alongside it for short periods.
What you see in the portal
Example
A distributor shows Investment ₹11,00,000, Net profit ₹30,000 for the month, ROI 2.7% (≈33% annualised) -- stock value and payment outstanding pulled automatically from their real billing data, not typed in by hand the way the calculator above requires.
Who it suits
Companies deciding whether a distributor territory is worth continued investment, and distributors who want to understand their own margins beyond a simple sales total.
How this compares with a spreadsheet ROI calculation
A spreadsheet version usually gets rebuilt from scratch each time, with investment or expense categories quietly left out or double-counted. This calculator mirrors one fixed, documented formula -- the same one the portal uses -- so the result means the same thing every time you run it.
See the for distributors page for the rest of what a distributor login covers, or read the full distributor ROI explainer.