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Break-Even ROAS Calculator

A 4x ROAS can still mean you're losing money. Enter your numbers to find the minimum ROAS you actually need — and see what RTO is doing to that number.

Your unit economics

Average Order Value / AOV (₹)

Average revenue per order

Product Cost / COGS (₹)

Manufacturing or sourcing cost per unit

Shipping Cost (₹)

Forward shipping per order

Payment Gateway Fee (%)

Razorpay / Cashfree is typically 2%

Other Variable Costs (₹)

Packaging, inserts, COD fee if applicable

RTO — leave blank if prepaid only

COD / RTO Rate (%)

Enter your estimated return rate on COD orders

Return Shipping Cost (₹)

Cost per rejected order coming back

Your current performance — optional

Your Actual ROAS

Enter this to see your real profit per order

How this works

Without RTO:

Contribution Margin=AOV − COGS − Shipping − Gateway Fee − Other Costs
Break-Even ROAS=AOV / Contribution Margin

With RTO:

RTO Cost Per Order=RTO% × (Fwd Shipping + Return Shipping + Other Costs)
Effective Margin=Contribution Margin − RTO Cost Per Order
Effective Break-Even ROAS=AOV / Effective Margin

Every rejected COD order costs you forward shipping, return shipping, and variable costs with zero revenue. That loss is averaged across all delivered orders, which is why a 25–30% RTO rate typically adds 0.3x to 0.6x to your effective break-even ROAS.

Read the COD vs Prepaid breakdown →

Working with a D2C brand?

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