Most online calculators neglect operational return rates (RTO). Input your logistics metrics to pinpoint the actual Return on Ad Spend (ROAS) required to protect your business bottom-line.
2.82x
At this ROAS, your net profit is exactly ₹0.00.
Don't guess your returns and shipping penalties. Upload your sales/settlement files to isolate exact leakage parameters.
Audit Real DataWhen selling online in India, a massive percentage of COD (Cash on Delivery) orders get cancelled or returned before they reach the customer—this is known as RTO. When an order goes into RTO, you don't receive any sales revenue, but you still pay for the forward courier transit, reverse penalties, and packaging materials.
This means every RTO'd order actively drains your profit. To cover these losses, your delivered orders must make a higher net margin, which directly spikes the required campaign ROAS threshold. If you run ads assuming 0% return rates, you are highly likely bleeding money on campaigns.
The basic formula for breakeven ROAS is 1 / Net Profit Margin %. However, to account for RTO returns, the Net Margin must represent the average profit of shipped items rather than single delivered items.
Our calculator uses the formula: Net Profit Per Shipped = [ (100 - RTO%) * (Delivered Profit) - (RTO%) * (Logistics Loss) ] / 100Where Logistics Loss includes forward courier rate + reverse charge + packaging cost. The Breakeven ROAS is then calculated as:Breakeven ROAS = Product Selling Price / Net Profit Per Shipped