COD Profit Calculator
Most calculators treat COD as a yes/no toggle. We model it as what it actually is: a conversion lever that comes bundled with a loss multiplier — COD orders RTO far more often than prepaid.
₹1,47,495/ month
Contribution margin: 44.0%. COD fee: ₹12,968, RTO/return shipping: ₹6,766.
This models a 100% Cash on Delivery scenario: every order incurs a COD handling fee (not a payment gateway fee), and your RTO rate is the real COD RTO rate — not a blended average with prepaid orders. "Marginal" means a positive but thin margin (under 10%) — worth watching, not yet a red flag.
A 100% Cash on Delivery seller with a COD RTO rate at the lower end of the typical fashion range — proof that COD isn't automatically a loss, as long as RTO stays in check.
Inputs
- Selling price
- ₹999
- Product cost
- ₹350
- Monthly COD orders
- 500
- COD RTO rate
- 22%
Result
- Contribution profit
- ₹1,47,495 / month
- Contribution margin
- 44.0%
- Verdict
- COD is profitable
Why does this calculator assume 100% COD?
To isolate the question cleanly — if your real mix is part COD and part prepaid, use the D2C Profit Calculator's COD share input instead, which models both at once.
What counts as a 'marginal' COD verdict?
A positive but thin contribution margin, under 10%. It's not a red flag yet, but it means you have very little room before a small rise in RTO or costs tips it into a loss.
Is the COD handling fee the same as a payment gateway fee?
No — COD orders don't go through a payment gateway at all. The COD handling fee is what the courier charges for collecting cash at the door, which is why this calculator sets the gateway fee to 0.
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