RTO calculator
Measure the return-to-origin rate clearly.
RTO rate = RTO orders ÷ shipped orders
60 orders returned out of 500 shipped is a 12% RTO rate.
Calculated result—
How to read the result
- Each RTO costs forward and return shipping with no revenue.
- Track RTO by payment method, pin code and campaign to find where it comes from.
- Prepaid incentives and address checks are the usual levers to bring it down.
RTO rate alone does not measure the full financial impact of returns. Your numbers tell you what you can afford; your rivals' ads tell you what the market is testing. See what Indian D2C brands are running.
Questions people ask
What is the formula?
RTO rate is returned-to-origin orders divided by shipped orders.
What should I track alongside RTO?
Track fulfillment cost, contribution margin, customer experience and the cohort definition used for the rate.