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RTO & Returns

RTO Recovery Calculator

Separates product inventory value from unrecoverable freight losses for accurate accounting.

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

CRITICAL LOGIC: 100 RTO orders of ₹500 product value does NOT mean ₹50,000 loss! If 90% inventory is undamaged and resellable, recoverable inventory is ₹45,000. Only 10% damaged stock plus freight/packaging form the actual unrecoverable loss.

Formula
Recoverable Inventory = Total RTO Units × Cost × Recovery %; Unrecoverable Loss = Total RTO Units × Cost × (1 - Recovery %) + Freight

💡 Realistic Indian E-Commerce Example

For 100 RTO shipments worth ₹50,000 inventory cost: Recoverable Stock = ₹45,000. Real Loss = ₹5,000 (damaged stock) + ₹11,000 (shipping/packaging) = ₹16,000 total net loss.

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Frequently Asked Questions

Common queries about this calculation methodology

Because RTO items return to your warehouse and can be resold to future buyers. Only damaged/lost items and logistics fees are true expenses.

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