D2C OPERATIONS / FREE TOOL

RTO Cost Calculator

Find the cost of one failed COD shipment and its expected cost across placed orders.

Instant calculation No account needed
01 / YOUR NUMBERS

Enter your inputs

Change any value to update the result instantly.

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LIVE RESULT

Cost of one RTO incident

₹200.00

Find the cost of one failed COD shipment and its expected cost across placed orders.

Expected cost per placed order₹30.00
Expected cost per 100 orders₹3,000.00

Expected costs assume the entered RTO probability applies to comparable orders.

THE THINKING BEHIND THE NUMBER

How to use this calculator

Use this unit-level calculator for one RTO incident. To project a whole month of losses across your order mix, use the D2C RTO Loss Calculator.

THE METHOD

Incident cost = forward + reverse shipping + packaging + handling + COD fee + unrecoverable product + other. Expected cost/order = incident cost × RTO probability.

A practical example

For illustration, enter forward shipping ₹70, reverse shipping ₹70, packaging loss ₹20, handling fee ₹15. With the remaining fields at their starting values, the cost of one rto incident is ₹200.00. Replace these sample figures with your own numbers before making a decision.

How to read your result

Only include genuinely nonrecoverable product cost, not the full product value when stock can be resold.

Use the result alongside your store analytics, product costs and operating context. If the inputs are estimates, treat the output as an estimate too. Change one input at a time to understand what drives the result.

GO DEEPER

Understand the result before you act

Calculate one failed-shipment cost

Separate the courier journey, handling, COD charges and genuinely lost product value. If returned stock is saleable, do not charge its full cost as a loss. Multiply the incident cost by expected RTO probability for planning.

CLEAR ANSWERS

RTO Cost Calculator FAQs

How do I use the RTO Cost Calculator?+

Enter your own business figures in the labelled fields. The result updates immediately and uses this calculation: Incident cost = forward + reverse shipping + packaging + handling + COD fee + unrecoverable product + other. Expected cost/order = incident cost × RTO probability.

What should I keep in mind when reading the result?+

Only include genuinely nonrecoverable product cost, not the full product value when stock can be resold.

Do I need to create an account to use this tool?+

No. This calculator is free to use without an account. Its numeric inputs are processed in your browser.

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