RTO cost calculator
Enter your monthly orders, COD share and RTO rate to see the real monthly cost of return-to-origin parcels, the hidden cost per order, and what a lower RTO rate is worth.
Monthly RTO cost
₹20,709
117 RTOs × ₹177 each
Cost per RTO
₹177
Forward + return + COD fee ₹35 + packaging
RTO cost spread over every order
₹21
Add this to your true shipping cost
Revenue not realised
₹1,40,400
Order value that never converted to cash
Saving at 12% RTO
₹6,903
Per month, from NDR follow-up and COD verification
COD fee uses the max(₹35, 1.5%) benchmark. RTO on prepaid orders is ignored (it is typically under 2%). See NDR management and how to reduce RTO.
What a return-to-origin parcel costs
A return-to-origin parcel is the most expensive thing that happens in Indian ecommerce. You pay forward freight to send it, return freight to get it back, the COD fee because the courier attempted a cash collection, and the packaging, and you earn nothing. On a ₹1,200 fashion order that is typically ₹180 to ₹220 gone, before the stock comes back two weeks later, often unsellable.
How much of it you can prevent
Most RTOs are preventable. The courier reports a failed attempt as an NDR days before it returns the parcel, and a quick call or WhatsApp to the buyer saves a large share of them. Use the target field to see what a realistic reduction is worth per month; for most stores it is more than any courier discount.
Questions about this tool
COD RTO rates of 15 to 25 percent are common for fashion and lifestyle categories; prepaid RTO is usually under 2 percent. Stores that work NDRs daily and verify risky COD orders run well below those numbers.
This calculator counts the cash you spend: freight both ways, COD fee and packaging. Lost or damaged stock on returned parcels is extra, as is the working capital tied up until the parcel comes back.
Respond to NDRs the same day, confirm first-time COD orders above a value threshold, offer a small prepaid discount, and restrict COD on pincodes where it keeps failing. See the RTO guide linked below.
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