RTO cost calculator

Is RTO eating my profit? What undelivered orders cost you every month, including the ads that bought them.

Free answer on screenAbout a minuteYour numbers stay in your browser

Your numbers

We have filled in typical numbers. Change any of them to yours.

How it is calculated

Is RTO eating my profit?

YES

Full breakdown

Three fixes for your numbers

  • Prepaid discount for high-RTO pin codes
  • WhatsApp confirmation on every COD order
  • Exclude repeat-RTO buyers from targeting

See the full breakdownThe numbers behind your answer and three fixes, also sent to your WhatsApp.

How it is calculated

Worked through with the typical numbers already in the calculator.

What you get

  • How many orders come back undelivered
  • Shipping, packing and ad spend lost each month
  • What a 5-point RTO cut would save
StepFormulaResult
Orders returned undelivered3,000 orders × 22%660
Shipping and packing lost660 × (₹70 + ₹70 + ₹25)₹108,900
Ad spend on undelivered orders660 × ₹350₹231,000
RTO cost a monthShipping lost + ad spend lost₹339,900

What a good number looks like

COD orders return at 1.8 to 2.3 times the rate of prepaid orders for the same products. Payment method predicts returns better than product quality.

COD return rates by category in India
COD return rates by category in India
Fashion and apparel25 to 40%
Footwear20 to 30%
Beauty and personal care18 to 22%
Home and décor15 to 20%
Sports and fitness12 to 16%
Electronics10 to 15%
Health and wellness8 to 12%

This page was updated in October 2026 and reviewed by our senior marketing team. Source: Base, COD return rates by product category in India (2026).

Mistakes that make this number wrong

We see these in most accounts we audit.

Counting only shipping

RTO also ties up stock for weeks and can damage products in transit.

One rate for every region

RTO varies a lot by state, city and pin code. An average hides where the losses are.

Mixing RTO and returns

RTO is never delivered. Returns are delivered, then sent back. Each has a different fix.

Ignoring payment method

COD orders return far more often than prepaid ones, so the payment mix changes the answer.

Definitions and questions

What is RTO?

Return to origin: an order shipped but never delivered, usually a refused COD order.

Why include ad spend?

You paid to win that order and got nothing back, so the ad cost is part of what RTO costs you.

What is a healthy RTO rate?

It depends on your category and your COD share. Fashion often sees 25 to 40% on COD orders, while electronics sees 10 to 15%. The benchmark table on this page shows the ranges by category.

Is RTO the same as a return?

No. RTO is an order that never reached the customer, usually refused or undeliverable. A return happens after delivery. Both cost money; RTO also wastes the ad spend that won the order.

Which pin codes have the highest RTO?

It differs by brand. Your own order data shows it in a day. We sort pin codes by RTO and volume in the free audit.

What numbers do I need?

You need orders shipped a month, your RTO rate, forward and return shipping, packing cost and ad cost per order.

How do I cut RTO?

Confirm COD orders on WhatsApp, offer prepaid incentives in high-RTO pin codes and stop targeting repeat-RTO buyers.

Why is COD RTO so much higher?

COD orders return at 1.8 to 2.3 times the rate of prepaid orders, because nothing is paid up front (Base, 2026).

Does RTO affect my ad performance?

Yes. Ad platforms count the order when it is placed, so RTO makes campaigns look better than they are.

How much could I save?

The calculator shows what a 5-point cut in RTO would save you each month, using your own numbers.

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Are we a great fit?

Five questions, no email needed. You get an honest answer on screen.

RTO cost calculator: Orders returned undelivered 3,000 orders × 22%; Shipping and packing lost 660 × (₹70 + ₹70 + ₹25); Ad spend on undelivered orders 660 × ₹350; RTO cost a month Shipping lost + ad spend lost
RTO cost calculator, at a glance

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