RTO Cost Calculator
See what COD returns cost you and what to fix first
Enter your orders and RTO rates to see what failed COD and prepaid shipments cost you each month. Then test what happens if you move customers to prepaid or confirm COD orders.
Everything runs in your browser. Nothing you enter is uploaded or stored.
What this tells you
What if you changed one thing?
These two sliders are assumptions, not promises. Set them to what you expect for your store.
What if your RTO rises?
| Delivered sales at RTO | |
|---|---|
| Delivered sales at RTO | |
| Sales lost | |
| Extra RTO cost | |
| Net loss a month (sales lost + extra RTO cost) | |
| Net loss a year | |
| For reference: total RTO cost a month at |
Your next step
How this is calculated
Failed shipments = COD orders × COD RTO rate + prepaid orders × prepaid RTO rate.
RTO cost = failed shipments × cost of one failed shipment.
Net loss = order value returned (failed shipments × average order value) + RTO cost. It is lost sales plus cost, not profit.
The RTO-rise test raises COD and prepaid RTO in proportion until blended RTO reaches the new level. Delivered sales = orders × average order value × (1 − RTO). Sales lost = delivered sales today minus delivered sales at the higher RTO. Net loss = sales lost + the extra RTO cost caused by the rise.
Each scenario runs the same formula again with one change, either fewer COD orders or a lower COD RTO rate, and shows the difference. It assumes the same customers still buy.
Bands for COD RTO: . These are rules of thumb for Indian D2C stores, not an industry standard, so compare them with your own history.
Estimates based on the numbers you enter and the assumptions above. Your real results will vary by courier, pin code and product.
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What the RTO cost calculator does
RTO (return to origin) happens when a shipment cannot be delivered and comes back to you. Each one costs you forward and return shipping, packaging, handling and the sale itself. This calculator turns your RTO rates into a monthly and yearly rupee figure, so you can see what to fix first.
How to use it
Enter your monthly orders, your COD share, the RTO rate on COD and on prepaid orders, the cost of one failed shipment and your average order value. Use numbers from the last 30 to 90 days. Then use the sliders to test two changes: moving some customers from COD to prepaid, or confirming COD orders before dispatch.
How the numbers are calculated
Failed shipments = COD orders × COD RTO rate + prepaid orders × prepaid RTO rate. RTO cost = failed shipments × cost of one failed shipment. Net loss adds the order value that came back, so it is lost sales plus cost, not profit. Everything runs in your browser and nothing you enter is uploaded or stored.
Frequently asked questions
What is a good RTO rate for COD orders?
It depends on your courier, pin codes and product. The calculator shows rule-of-thumb bands for Indian D2C stores. They are not an industry standard, so compare them with your own history.
Does the calculator include lost sales?
Yes. Net loss is the order value that came back plus the cost of the failed shipments.
What should I fix first?
The calculator shows how much each change saves a month for your numbers. Start with the bigger saving, then read the related article for practical ways to cut RTO.