India D2C calculator
COD vs Prepaid Profit Calculator + Max Prepaid Discount
Compare expected profit per dispatched order when COD carries higher RTO and fees, prepaid pays gateway charges, and you offer a UPI/card coupon — then see how much monthly profit moves if a slice of COD buyers switches.
Order economics (ex-GST)
Comparable net selling price
Per order
Logistics
COD assumptions
Prepaid assumptions
Volume & shift
Results
Expected profit — COD (per dispatched)
₹460
Expected profit — prepaid (per dispatched)
₹607
Profit per delivered — COD
₹613
Profit per delivered — prepaid
₹626
Prepaid advantage per dispatched order
₹147
Max prepaid discount you can afford
₹205
Monthly uplift from COD → prepaid shift
₹19,174
Prepaid wins by ₹147 per dispatch at a ₹50 incentive — you could raise the coupon to about ₹205 and still match COD economics.
COD vs prepaid — revenue, costs & expected profit (₹ per dispatch)
This calculator provides estimates for learning purposes. Results depend on your inputs and assumptions.
COD vs prepaid unit economics
Indian checkout still skews COD, but prepaid usually lowers RTO and removes COD handling fees while adding payment gateway cost. This calculator compares expected profit per dispatched order (not just delivered) so you do not ignore refused shipments. Pair with RTO Cost Calculator for aggregate loss and Discount Impact Calculator for coupon depth.
How it's calculated
COD: P(deliver) = 1 − COD RTO. Expected profit = P × (price − COGS − COD fee) − forward/packaging − (1−P) × (return shipping + damage). Prepaid: net price = price − prepaid discount; gateway fee on net price; lower prepaid RTO. Max prepaid discount solves where prepaid expected profit equals COD. Monthly uplift = orders × COD share × shift % × (prepaid − COD advantage).
Worked example (default inputs)
At ₹1,200 ex-GST price, ₹400 COGS, 25% COD RTO vs 3% prepaid RTO, ₹30 COD fee, 2% gateway, ₹50 prepaid discount: COD expected profit ≈ ₹460 per dispatch, prepaid ≈ ₹607. Prepaid advantage ≈ ₹147. Max affordable prepaid discount ≈ ₹205. If 20% of 65% COD buyers switch on 1,000 orders/month, uplift ≈ ₹19,174/month.
Typical ranges in Indian D2C
Commonly reported ranges for checkout experiments:
| Tier | Range | What it means |
|---|---|---|
| Prepaid coupon | Often ₹30–₹150 | Stay below max affordable discount from this tool. |
| COD fee | Often ₹20–₹40 per order | Can shift mix when CM2 is tight. |
| RTO gap | COD often much higher than prepaid | Main driver of prepaid profit edge. |
How to improve it
- Partial COD with UPI prepay. 2) Dynamic prepaid discount by pincode RTO. 3) COD convenience fee above typical ₹30. 4) WhatsApp pay links for high-AOV carts. 5) Wallet loyalty instead of flat coupons.
Frequently Asked Questions about COD vs Prepaid
- Is COD or prepaid more profitable?
- Depends on RTO gap, COD fee, gateway %, and coupon — this tool compares expected profit per dispatch with your assumptions.
- How much prepaid discount should I offer?
- Stay at or below the max prepaid discount output; commonly reported checkout coupons are often ₹30–₹150.
- Should I charge a COD fee?
- A transparent COD fee can shift mix toward prepaid when CM2 is under pressure.
- How do RTO rates change profit per order?
- Higher RTO increases return freight and damage — COD typically suffers more than prepaid.
- What is partial COD?
- Customer pays part upfront via UPI and the balance on delivery — lowers refusal risk.
- How do I push customers to prepaid?
- Use coupons below max affordable discount, COD fees, faster dispatch promises, and trust badges on UPI/card.
Related Calculators
Quantify total RTO loss
Roll COD mix into monthly rupee loss across logistics and CAC.
RTO Cost Calculator