Cash on delivery (COD) cost calculator
Refused orders cost you shipping with no revenue, and this calculator spreads that loss over the orders that were actually delivered.
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter orders shipped, average order value, fixed cod fee per order, cod fee as % of order value, shipping cost per attempt and refusal rate.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Delivered = orders × (1 − refusal rate). Collection fees = delivered × (fixed fee + COD % × order value). Shipping = orders × shipping cost. Returns = refused orders × return fee. Cost per delivered order = total ÷ delivered.
Example
Inputs: Orders shipped = 100, Average order value = 250, Fixed COD fee per order = 5, COD fee as % of order value = 1 %, Shipping cost per attempt = 20. Result: Cost per delivered order: 32.79; Total cost: 2,787.50; Cost of refused orders: 450.00.
Limits and caveats
- It assumes the COD fee applies only to delivered orders; some couriers charge it differently.
- Damaged returned stock and the cost of delayed cash remittance are not included.
Questions about this tool
Why is the cost spread over delivered orders only?
Revenue comes only from delivered orders, so they have to carry the shipping wasted on refused ones.
How do I find my refusal rate?
Divide the orders returned because the customer refused them by the orders shipped in the same period, then multiply by 100.
Is it worth offering a prepaid discount?
Compare the cost per delivered order here with your online payment cost. The gap is the largest discount you can offer without losing money.