# COD profit calculator

> Free COD profit calculator. Enter orders, confirmation rate, delivery rate, shipping and return fees to see what you keep after RTO and ads.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/cod-profit-calculator

Cash on delivery profit is decided after the order: by how many orders get confirmed and how many the courier delivers. Enter your funnel and costs to see what you keep after returns and ads.

## What it calculates

This calculator follows each placed order through confirmation and delivery. Revenue counts only delivered orders, while ad spend counts every placed order. Each order that comes back (RTO) costs you shipping out, the courier's return fee and any stock you can't resell. The result is your real profit for the period, not the number in your sales report.

## Formula

```
Confirmed = Placed × confirmation rate
Delivered = Confirmed × delivery rate
Returned = Confirmed − Delivered
Revenue = Delivered × order value
Profit = Revenue − COD fee
  − Delivered × (COGS + shipping)
  − Returned × (shipping + return fee)
  − Returned × COGS × unsellable share
  − Ad spend
```

## Worked example

Inputs:
- Orders placed: 1000
- Average order value: USD 60
- Product cost per order: USD 22
- Shipping per shipment: USD 7
- Return fee per RTO: USD 4
- COD collection fee: 1%
- Confirmation rate: 80%
- Delivery rate: 75%
- Ad spend: USD 12,000
- Returned stock you can't resell: 0%

Results:
- Net profit after RTO and ads: USD 4,040
- Delivered orders: 600
- Returned orders (RTO): 200
- Cash collected: USD 36,000
- Cost of returns: USD 2,200
- Profit per delivered order: USD 6.73
- Ad cost per delivered order: USD 20

## What changes the result

Delivery rate at five values; every other input as in the example.

| Delivery rate | Net profit after RTO and ads | Profit per delivered order |
| --- | --- | --- |
| 52.5% | -USD 3,412 | -USD 8.12 |
| 63.8% | USD 331 | USD 0.65 |
| 75% (example) | USD 4,040 | USD 6.73 |
| 82.5% | USD 6,524 | USD 9.88 |
| 90% | USD 9,008 | USD 12.51 |

## How to read the result

If profit is negative, look at delivery rate first. Every point of delivery rate adds revenue without adding ad spend.
Compare ad cost per delivered order with what one delivered order earns before ads. If ads cost more, the campaign loses money however many orders it brings.
If returned parcels often come back opened or damaged, raise the unsellable share. Most free COD calculators assume every return goes back on the shelf.

## Questions

**What is RTO in cash on delivery?**
RTO (return to origin) is an order the courier brings back because the customer refused it or couldn't be reached. You pay the shipping out, usually a return fee, and you collect nothing.

**Why does ad spend count against every placed order?**
You pay for the ad when the order is placed, before anyone confirms or receives it. A refused order still cost you the ad that brought it.

**What's the difference between confirmation rate and delivery rate?**
Confirmation rate is the share of placed orders the customer confirms before you ship, often by phone or WhatsApp. Delivery rate is the share of shipped orders the courier delivers and collects. The calculator multiplies the two.

**Do you store what I enter?**
No. The calculation runs in your browser and nothing is sent to Analify.

## Use your real numbers

Analify reads placed and confirmed orders from Shopify, delivery and return results from connected couriers, and ad spend from Meta, TikTok and Google. It reports Blended Profit for the same period every day. Analify reads 9 of these 10 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/cod-profit-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools