Prepaid vs COD Calculator
COD brings in more orders, but far more of them come back undelivered. This compares what one order actually earns you when it's paid online versus Cash on Delivery — and tells you the largest "pay online and save" discount you can offer before prepaid stops being worth it.
Prepaid (with 5% off)
More profitable₹409.24
profit per order placed
98% delivered · gateway fee ₹18.98/order
Cash on Delivery
₹284.98
profit per order placed
74% delivered · COD fee ₹25.90/order
Every order you move from COD to prepaid earns you ₹124.27 more — ₹1,24,266 per 1,000 orders.
A ₹1,499 kurta with a typical apparel RTO gap — 28% on COD, 6% on prepaid — and a 5% discount for paying online.
Inputs
- Selling price
- ₹1,499
- Product cost
- ₹520
- COD RTO rate
- 28%
- Prepaid RTO rate
- 6%
- Prepaid discount
- 5%
Result
- Profit per COD order
- ₹454.47
- Profit per prepaid order
- ₹604.36
- Gain per order moved to prepaid
- ₹149.88
- Largest affordable prepaid discount
- 17.2%
Is prepaid always more profitable than COD?
Usually, because prepaid orders come back undelivered far less often — about 2% nationally versus 26% for COD in GoKwik's data. But a big prepaid discount, a high gateway fee or a low COD RTO rate can flip it. That's what this calculator checks.
How much discount should I give for prepaid orders?
Less than the break-even discount this calculator shows. At that point a prepaid order earns exactly what a COD order does, so anything below it is profit you keep for every buyer you convert.
Why is profit counted per order placed, not per delivery?
Because you pay for the orders that never get delivered too — freight out and back, packaging and damaged stock. Counting per order placed is what makes COD's higher RTO show up in the number.
Should I stop offering COD?
Not necessarily. Many Indian buyers only order with COD, so switching it off can cost you sales. Use the discount to nudge buyers toward prepaid, and use the COD Profit Calculator to check COD still makes money on its own.
Should you offer cash on delivery? COD charges for sellers, the RTO rate where COD stops paying, and how many extra orders COD must bring in to pay off.
RTO (Return to Origin) is an order shipped but never delivered. What causes it, how it differs from a return, how common it is in India and what it costs.
Practical ways Indian sellers cut COD RTO, from order confirmation and prepaid incentives to faster delivery, and what a lower RTO rate is worth in rupees.
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