The PPD (Pay-Per-Discount or often understood as Profit-Per-Deal) Settlement Calculator helps in determining the final amount a seller or service provider receives after accounting for various deductions from the initial cost of an item or service. This is crucial for businesses to accurately forecast their net revenue, manage pricing strategies, and understand their profit margins.
This calculator breaks down the settlement calculation into several key components:
Cost of Item/Service: This is the initial price or value of the product or service being sold before any discounts or fees are applied.
Discount Percentage: Some transactions might involve a discount offered to the customer. This field allows you to input the percentage discount. The calculator will then compute the actual discount amount.
Applicable Tax Rate: This refers to the sales tax or value-added tax (VAT) that is levied on the transaction. The tax is typically applied to the discounted price.
Processing Fee: This is a fixed amount charged for handling the transaction, which could include payment gateway fees, administrative costs, or other service charges.
How the Calculation Works:
The calculator follows a logical sequence to arrive at the final settlement amount:
Calculate Final Settlement Amount: This is the price after tax, minus any fixed processing fees.
Final Settlement Amount = Price After Tax - Processing Fee
All calculations are performed, and the final result is presented to the user. It's important to ensure that the inputs are accurate for a reliable settlement figure.
Use Cases:
This calculator is beneficial for:
Small businesses and freelancers determining their take-home pay.
E-commerce stores verifying payouts from platforms.
Service providers calculating net income after discounts and fees.
Anyone looking to understand the true cost and revenue of a discounted transaction with added taxes and fees.
By using this tool, you gain clarity on the financial outcomes of your sales and services, enabling better business decisions.
function calculatePpdSettlement() {
var itemCostInput = document.getElementById("itemCost");
var discountPercentageInput = document.getElementById("discountPercentage");
var taxRateInput = document.getElementById("taxRate");
var processingFeeInput = document.getElementById("processingFee");
var itemCost = parseFloat(itemCostInput.value);
var discountPercentage = parseFloat(discountPercentageInput.value);
var taxRate = parseFloat(taxRateInput.value);
var processingFee = parseFloat(processingFeeInput.value);
var resultContainer = document.getElementById("resultContainer");
var ppdSettlementResult = document.getElementById("ppdSettlementResult");
// Input validation
if (isNaN(itemCost) || itemCost < 0) {
alert("Please enter a valid positive number for the Cost of Item/Service.");
return;
}
if (isNaN(discountPercentage) || discountPercentage 100) {
alert("Please enter a valid discount percentage between 0 and 100.");
return;
}
if (isNaN(taxRate) || taxRate < 0) {
alert("Please enter a valid positive number for the Tax Rate.");
return;
}
if (isNaN(processingFee) || processingFee < 0) {
alert("Please enter a valid positive number for the Processing Fee.");
return;
}
var discountAmount = itemCost * (discountPercentage / 100);
var discountedPrice = itemCost – discountAmount;
var taxAmount = discountedPrice * (taxRate / 100);
var priceAfterTax = discountedPrice + taxAmount;
var finalSettlement = priceAfterTax – processingFee;
// Ensure settlement is not negative if fees exceed value
if (finalSettlement < 0) {
finalSettlement = 0;
}
ppdSettlementResult.textContent = "$" + finalSettlement.toFixed(2);
resultContainer.style.display = "block";
}