Shipping and COD profit calculator
An order that looks profitable can lose money once courier charges, COD fees and returned parcels are counted. This free calculator works out what you really keep per order, your break-even price and the price for the margin you want. No sign-up is needed, and your numbers stay on your device unless you choose to send them.
How it works
The calculator models 100 orders. Delivered orders = 100 × (1 − return %). Revenue and product cost count only delivered orders, because returned products are assumed to come back in sellable condition. Packaging and forward shipping are paid on all 100 orders, and return shipping on each returned one. COD fees (fixed fee plus a percentage of price), gateway fees and commission apply to delivered orders.
Tax at the rate you choose (18%, 5% or none) is added on shipping, return shipping, COD, gateway and commission charges. Profit = revenue − product cost − packaging − all shipping − fees − tax on fees. Profit per order shipped is that total ÷ 100, and margin is profit ÷ revenue. The break-even price and the price for your target margin are found by solving for the price where profit equals zero or your margin.
How to use it
- Enter the selling price, product cost, packaging and shipping charge per order.
- Choose COD or prepaid, then add the COD or gateway fee and any marketplace commission.
- Enter your return (RTO) rate, return shipping cost, tax on fees and target margin.
Questions
What is RTO in e-commerce?
RTO means return to origin: the customer refuses the parcel or cannot be reached, so the courier brings it back. You usually pay shipping both ways and earn nothing. COD orders tend to have more RTO, so the return rate is often the biggest number in this calculator.
Is COD or prepaid more profitable?
Switch the payment mode in the calculator and compare. Prepaid removes the COD fee but adds a gateway fee, and prepaid orders are often returned less. Enter your own return rate for each mode to see which leaves more profit per order in your business.
Does it include GST on courier charges?
Yes, if you choose it. Pick 18%, 5% or none, and the tool adds that tax on shipping, return shipping, COD, gateway and commission charges. It does not count input tax credit, so check the final tax treatment with your accountant.
Is my data stored anywhere?
No. The tool is free, needs no sign-up and runs in your browser. Your numbers stay on your device unless you choose to copy the result, share it on WhatsApp, save a PDF or send it to us.
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