AMMERZE

Free seller tool

RTO & margin calculator

Your selling price isn't your profit. See what each order really earns once GST, fees, shipping and the orders that come back are counted.

  • Free, no sign-up
  • Runs in your browser
  • Nothing you type is stored
The sale
₹

What the customer pays, including GST.

%
₹

What one unit costs you to buy or make.

₹
Channel fees
%

Of the selling price.

₹
₹

Selling on your own website? Set commission to 0 and keep the payment gateway fee.

Shipping and RTO
₹
₹

Often the same as forward shipping.

% of orders
%

Damaged, used or missing when the parcel comes back.

Volume

How it's worked out

The order that comes back costs twice.

Enter fees and shipping without GST if you claim input credit on them. Results are estimates to plan with, not accounting advice.

Last reviewed

  1. 1

    Take GST out of the price

    The GST in your selling price belongs to the government, so margins start from the price without it.

    Net price = selling price ÷ (1 + GST %)

  2. 2

    Work out a delivered order

    From the net price, take away the product cost, packaging, channel commission and fixed fees, payment or COD fees and forward shipping.

    Delivered profit = net price − product − packaging − fees − forward shipping

  3. 3

    Work out an RTO

    When an order comes back you've paid shipping both ways and lost the packaging. Some units come back damaged and can't be sold again, and some channels keep their fees.

    RTO loss = forward + return shipping + packaging + (damage % × product cost)

  4. 4

    Blend them at your RTO rate

    The profit of an average shipped order is the delivered profit on the orders that arrive, minus the loss on the ones that return. Where the two cancel out is your break-even RTO rate.

    Per order = (1 − RTO %) × delivered profit − RTO % × RTO loss

FAQ

Good questions.

What sellers ask about the rto & margin tool.

Still have a question?

Our team will walk you through it.

RTO means return to origin: the courier couldn't deliver the order, or the customer refused it, so the parcel travels back to your warehouse. It is most common on cash-on-delivery orders. Unlike a customer return, the customer never paid, so you carry the shipping both ways with no sale.

At least the forward shipping, the return shipping and the packaging. Add the share of units that come back damaged or incomplete, and any commission, closing or COD fees your channel keeps. The calculator adds these up for one RTO and for a whole month.

It is the RTO rate at which the profit from delivered orders is exactly cancelled out by the losses on returned ones. Above it, every order you ship loses money on average. The thinner your margin, the lower your break-even RTO rate.

The GST collected on a sale is paid to the government, so it is not your revenue. The calculator assumes you are GST-registered and claim the GST on fees and shipping as input credit, so those costs are entered without GST.

Common steps are confirming COD orders by call or WhatsApp before shipping, offering a small discount for prepaid orders, blocking pin codes and repeat customers with high RTO, showing accurate delivery dates and sizes, and shipping fast so customers don't cancel on the doorstep.

Yes. Enter the commission percentage, fixed or closing fee and payment fee from the rate card of the channel you sell on. For your own Shopify or WooCommerce store, set commission to zero and enter your payment gateway or COD fee.

Returns, tracked

Know every RTO by channel.

Ammerze tracks returns and RTOs from every channel in one place, and puts what comes back in good shape straight back into stock.