COD vs Prepaid Calculator
Compare COD vs prepaid economics with RTO losses factored in.
Extra handling charge couriers add for cash collection.
A prepaid order earns ₹147.6 more than a COD one. Nudge buyers to prepaid with a small discount and COD confirmation to protect your margin.
How the COD vs prepaid calculator works
Cash on delivery widens your funnel but quietly erodes margin. On a delivered order you earn the order value minus product cost and forward shipping (and a COD handling fee for COD). On a return to origin (RTO) the product comes back but you still pay forward and reverse shipping, so a high COD RTO rate can turn a healthy order into a loss. Enter your own numbers to see profit per prepaid order, profit per COD order and your monthly profit at the current payment mix.
Use it alongside the shipping cost calculator to nail your freight assumptions, then check what each sale really keeps with the profit margin calculator.
Frequently asked questions
Why is COD less profitable than prepaid?
COD orders carry extra COD handling fees and a much higher RTO (return-to-origin) rate. Every RTO means you pay forward and reverse shipping with zero revenue. The calculator quantifies this so you can see the real cost of offering COD.
What is a good RTO rate to assume?
Indian D2C COD RTO commonly runs 15–30% depending on category, pincode mix and how you verify orders. Prepaid RTO is typically under 5%. Enter your own numbers from your courier dashboard for the most accurate result.
How can I reduce COD RTO?
Confirm COD orders on WhatsApp or IVR before dispatch, offer a small prepaid discount, block risky pincodes, and add a partial COD advance. OrderLyne automates COD confirmation and abandoned-cart nudges to cut RTO.
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