How the calculator works
It counts what you pay to get orders to customers in one month, then divides by the orders that were actually delivered, because those are the only orders that earn you money.
- Delivered orders = orders dispatched minus failed and returned orders.
- Delivery cost = delivered orders x delivery charge, plus failed orders x the failed or returned charge.
- Packaging and pick and pack are paid on every order you dispatch, including the ones that come back.
- COD fee = the percentage your courier deducts from the cash collected on delivered orders.
- Cost per delivered order = everything above plus your monthly costs, divided by delivered orders.
Why failed deliveries matter so much
A failed COD order earns nothing but still costs a delivery charge and the packaging. At a 15% failure rate on 300 orders, 45 parcels a month cost you money and bring nothing back. Try lowering the failed rate in the calculator by a few points to see what confirming orders before dispatch is worth. Our guide on reducing fake COD orders covers how.
Cash tied up in COD
COD settlement time is not a fee, but cash sitting with a courier cannot be spent on stock or ads. The calculator multiplies your daily COD collections by the days until payout to show how much of your money is waiting at any time. See how COD settlement and reconciliation work.
Comparing couriers and 3PLs
Run the calculator once for each courier or 3PL quote you have, using their real delivery, failed order and COD charges. Compare the cost per delivered order, not the headline rate per parcel. A cheaper rate with a COD fee or a separate return charge can end up costing more. For every cost line in detail, read what fulfillment really costs an online store in Pakistan.