What is a normal RTO rate?

It varies widely by category, price, region and payment mix. Use your own numbers from your seller panel or courier dashboard.

What goes into the cost per RTO?

Forward and return shipping you are charged, packaging, and any stock that comes back damaged.

Which platform calculator should I use?

Use this for your whole business, and the Meesho, Amazon or Flipkart calculators for profit on a single product.

DrapifyApp All free tools

RTO and returns cost calculator

Free · No signup · Updated November 2026 by the DrapifyApp team

How much do RTO and returns cost my business?

Enter your monthly orders, how many are cash on delivery, your RTO rates for COD and prepaid orders, your customer return rate and what each costs. The calculator shows RTO orders and returns per month, their total cost, the cost per order shipped, the sales that never landed and how much a lower RTO rate would save.

Orders shipped / monthAverage order value (₹)Cash on delivery (% of orders)RTO rate on COD (%)RTO rate on prepaid (%)Cost per RTO (₹)Forward + return shipping, packaging, damageCustomer returns (% of delivered)Cost per return (₹)If you cut RTO by (%)

RTO orders / month: 135 (13.5%)
Customer returns / month: 69
RTO + return cost / month: ₹15,678
Cost per order shipped: ₹15.68
Sales that never landed: ₹80,865
Saved by cutting RTO 25%: ₹2,363

Example numbers only. Use your own RTO and return rates from your seller panel or courier dashboard; COD orders usually return to origin far more often than prepaid ones.

Fewer returns, better margin

Show buyers the real fit and colour

Returns and RTO eat profit. On-model photos that match what buyers receive help them choose right the first time.

First 2K photo free, no card
Ready in about 3 minutes
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How to use it

Enter orders shipped per month and your average order value.
Enter the share of cash-on-delivery orders.
Enter RTO rates for COD and prepaid, and the cost of each RTO.
Add your customer return rate and cost, then try a lower RTO rate.

RTO versus customer returns

RTO (return to origin) is an order that never reaches the buyer: refused, unreachable or a wrong address. A customer return is delivered first and then sent back. RTO is mostly a cash-on-delivery problem, while returns are usually about fit, colour or quality.

Ways sellers lower RTO

Confirming COD orders by call or WhatsApp, offering a small prepaid discount, checking addresses and pincodes, and showing true-to-life photos and sizes all reduce refused deliveries.

Questions

What is a normal RTO rate?: It varies widely by category, price, region and payment mix. Use your own numbers from your seller panel or courier dashboard.
What goes into the cost per RTO?: Forward and return shipping you are charged, packaging, and any stock that comes back damaged.
Which platform calculator should I use?: Use this for your whole business, and the Meesho, Amazon or Flipkart calculators for profit on a single product.