COD RTO Profit Calculator
Estimate the real impact of COD returns (RTO), shipping and advertising costs on your e-commerce profit.
Estimate only. Actual courier, COD, tax and marketplace charges vary by business and provider.
How this COD RTO calculator works
For a batch of placed COD orders, the calculator separates expected delivered and RTO orders. Revenue is counted only on delivered orders, while advertising and forward shipping are applied to all placed orders. RTO orders also include return-shipping cost.
What is break-even RTO rate?
The break-even RTO rate is the approximate return-to-origin percentage at which expected profit reaches zero using the costs entered above. A lower actual RTO rate generally leaves more contribution margin.
Example
If you receive 100 COD orders with a 25% expected RTO rate, the estimate uses 75 delivered orders and 25 RTO orders. Change your product cost, shipping, COD fee and ad cost to model your own store.
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COD RTO Calculator FAQs
What does RTO mean in e-commerce?
RTO means Return to Origin: an order is sent back to the seller instead of being successfully delivered.
Does RTO affect advertising cost?
Yes. You may still pay to acquire an order even when it later becomes RTO, so this calculator applies ad cost to placed orders.
Is this only for COD orders?
It is designed around COD/RTO economics. Prepaid orders normally have different return and payment-cost behavior.