free tool

RTO calculator: what is RTO costing you?

Enter your monthly COD orders, RTO rate and what one return costs you. See the monthly loss, and how much confirming orders before you ship would save. No email needed.

Share of COD orders that come back undelivered.
Forward + return shipping, packaging, handling.
Orders cancelled on the call instead of shipped both ways.
RTO costs you
Confirming saves
Callfox costs
RTO calculator by Callfox — AI COD confirmation calls for Indian D2C brands
the formula

How RTO cost is calculated.

Monthly RTO cost = COD orders × RTO rate × cost per RTO. A brand shipping 1,000 COD orders a month at a 27% RTO rate gets 270 orders back. At ₹250 per return, that is ₹67,500 a month spent shipping products out and back with nothing sold.

What goes into the cost of one RTO:

  • Forward shipping — paid whether or not the customer accepts.
  • Return shipping — most couriers charge RTO at or near the forward rate.
  • Packaging and handling — packing it, then receiving, inspecting and restocking it.
  • Stock in transit — not in the calculator, but a returned order is inventory you couldn't sell for one to three weeks.

Savings = RTOs × share prevented × cost per RTO. A confirmation call before dispatch catches orders that were never going to be accepted. The Callfox cost here assumes about 70% of customers answer, one billed minute each at ₹6.40 (the 2,499-minute pack), and no monthly fee (see pricing).

faq

RTO cost questions.

How do I calculate RTO cost?

Multiply your monthly COD orders by your RTO rate to get returned orders, then multiply by what one return costs you. A return usually costs forward shipping, return shipping, packaging and handling — often ₹200–300 per order for Indian D2C brands, before counting the stock locked up in transit.

What is a normal RTO rate for COD orders in India?

Published figures vary widely by category and city tier, but COD orders commonly see RTO rates of 20–30%, and higher in fashion and in Tier 2 and Tier 3 cities. Prepaid orders return far less often. Use your own courier reports if you have them.

How does confirming COD orders reduce RTO?

Many COD returns are orders the customer never really meant to accept: impulse buys, duplicates, wrong addresses or fake orders. A confirmation call before dispatch catches them, so you cancel instead of paying to ship the order both ways.

Can I put this calculator on my own site?

Yes. Copy the embed code at the bottom of this page. It is free to use as long as the credit link to Callfox stays in place.

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Put this calculator on your site.

Free for blogs, agencies and courier partners. Keep the credit link in place.