How it is calculated
App cost
Monthly sales through the app equals orders multiplied by average order value. Commission is a percentage of that. GST at 18 percent is charged on the commission itself, not on your food. Payment processing and the ads or discounts you fund are added as percentages of sales.
Direct channel cost
A platform plan per month, a flat per-order fee, and the payment gateway charge on the share of orders paid online. Cash on delivery orders carry no gateway charge. Tezzu charges ₹999 to ₹3,999 a month and ₹10 per order, with no commission.
What it leaves out
Orders you would never have received without the app. Use the share of your app orders that come from repeat customers to estimate what could move to a direct channel.
Frequently asked questions
What commission do food delivery apps charge restaurants in India?
Commission is set per restaurant in the partner agreement and is commonly between 18 and 30 percent of the order value, with GST charged on top of the commission. New restaurants, cloud kitchens and restaurants that use the app's delivery fleet tend to sit at the higher end. Check your own agreement rather than relying on a typical figure.
Is GST charged on the commission?
Yes. The commission is a service the app provides to you, so 18 percent GST applies to it. On a ₹500 order with 25 percent commission, that is ₹125 of commission plus ₹22.50 of GST before anything else is deducted.
Does this calculator work for US or UAE delivery apps?
The structure is the same: commission, tax on commission where it applies, payment processing and funded promotions. Change the currency in your head and enter the percentages from your own statement.
How much of my app volume can realistically move to a direct channel?
Restaurants that give regulars a WhatsApp number to order on commonly move a meaningful share of repeat orders within a few months, while keeping the apps for discovery. Count the share of your app orders that come from customers who have ordered before and treat that as the ceiling.