Calculator
What does RTO actually cost your D2C brand?
Estimate monthly RTO loss from COD share, RTO rate, shipping both ways and product cost. Built for Indian D2C brands shipping with Shiprocket and similar couriers.
Short answer
RTO cost is not just reverse shipping. For each returned order you typically lose forward shipping, reverse shipping, product handling or write-off, and the contribution you would have made. Multiply that by monthly RTO orders to see the hole.
Calculator
Illustrative defaults — replace with your numbers.
RTO orders / month
360
Cost per RTO
₹380
Monthly RTO loss
₹1,36,800
Forward + reverse + product × RTO orders
Monthly RTO loss
RTO orders = shipped orders × RTO rate
Cost per RTO = forward shipping + reverse shipping + product cost (or handling)
Monthly loss = RTO orders × cost per RTO
- — Figures you type are yours. The default numbers are illustrative, not MarQet customer averages.
- — Some brands recover part of the product; use handling cost instead of full COGS if you restock cleanly.
Frequently asked questions
What is a typical RTO rate for Indian D2C?
It varies widely by category, COD mix and pincode. Measure your own prepaid vs COD RTO in a blended dashboard rather than using a published average.
Does this include lost ad spend?
Not in the base formula. If you want a fuller view, add CAC × RTO orders, or use the contribution-margin calculator and treat RTO as a line item.
Keep reading
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