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RTO & Returns

RTO Loss Calculator

Calculate total financial loss from Return To Origin (RTO) non-delivery orders.

Calculator Inputs

Calculation Results

Live updating metrics

Live Computed
Primary Output Metric
Profit / Margin Impact
Informational Disclaimer: This calculation provides an estimate for informational purposes. Actual marketplace fees, GST liabilities, and courier charges depend on seller tier, category, fulfillment mode, and current platform policies.

How This Calculation Works

RTO occurs when a buyer rejects a COD shipment at delivery. The seller pays double logistics (forward + return shipping) and loses packaging without making any sale.

Formula
Net RTO Loss = (RTO Orders × (Forward Freight + Reverse Freight + Packaging Loss + Damaged Goods Value))

💡 Realistic Indian E-Commerce Example

Out of 1,000 orders, 150 are RTO (15%). Forward shipping is ₹60, return shipping is ₹50, packaging is ₹15, and 10% inventory is damaged. Total monthly RTO loss = ₹24,000.

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Frequently Asked Questions

Common queries about this calculation methodology

COD RTO rates in India typically range from 15% to 30% depending on product category, price point, and customer location.
Yes, marketplaces generally refund sales commission on RTO, but retain or charge logistics and closing fees.

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