COD Profit Calculator

What is COD profit?

In COD you pay ads for every order, but only delivered orders bring money. Returned (refused) orders cost delivery both ways and their ad cost. Net profit = delivered revenue − product cost of delivered orders − all delivery and return charges − COD fees − total ad cost.

How to use the COD profit calculator (formula)

What each field means

• Total orders — Orders confirmed and shipped.
• Selling price — Price per order in BDT.
• Product cost — Product cost per order.
• Delivery cost — Courier charge per order (inside/outside Dhaka average).
• Return delivery cost — Charge for a returned parcel.
• COD fee per order — Courier COD charge per order (often ~1% of collected amount).
• Ad cost per order — Facebook/Google ad cost per order.
• Return rate — Percentage of parcels refused or returned.

Worked example

Using these numbers: total orders 100, selling price ৳1,200, product cost ৳550.00, delivery cost ৳70.00, return delivery cost ৳70.00, cod fee per order ৳12.00, ad cost per order ৳150.00, return rate 15%.

The net profit is ৳31,180.

• Successful orders: 85
• Returned orders: 15
• Total cost: ৳70,820
• Profit per delivered order: ৳366.82
• Net margin: 30.6%

What is a good COD return rate in Bangladesh?

Most Bangladeshi COD stores see 10–25% returns. Under 10% is excellent; above 20% usually wipes out profit unless margins are very high.

Tips to improve your result

• Confirm every order by phone or WhatsApp before shipping — it is the fastest way to cut returns.
• Take a small advance delivery charge for outside-Dhaka orders.
• Track return rate per ad campaign; some audiences return far more.
• Use the BD pricing calculator to set prices that survive your return rate.

Frequently asked questions