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Documentation Index

Fetch the complete documentation index at: https://mintlify.com/shubhamsingh-pg/rto-profit-simulator/llms.txt

Use this file to discover all available pages before exploring further.

The Business Inputs section is where you configure all the operational parameters that drive the RTO calculations. Every metric in the simulator updates in real-time based on these inputs.

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Component Location

Implemented in: src/components/InputSection.jsx:23-63

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Input Fields

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Monthly Orders

  • Default: 10,000 orders
  • Type: Number (min: 0)
  • Description: Total number of orders processed per month across all payment methods
  • Impact: Base volume for calculating revenue, RTO orders, and total losses

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Average Order Value (AOV)

  • Default: ₹1,500
  • Type: Currency (min: 0)
  • Prefix: ₹
  • Description: Mean value of each order placed
  • Impact: Used to calculate total revenue and realized revenue
Average Order Value should reflect the typical transaction value after discounts and before shipping costs.

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COD Percentage

  • Default: 60%
  • Type: Percentage (min: 0, max: 100)
  • Suffix: %
  • Description: Percentage of orders placed using Cash on Delivery
  • Impact: Determines how many orders are at risk of RTO (only COD orders can become RTOs)

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RTO Percentage

  • Default: 30%
  • Type: Percentage (min: 0, max: 100)
  • Suffix: %
  • Description: Percentage of COD orders that result in Return to Origin
  • Impact: Core metric for calculating RTO losses and break-even thresholds
Industry benchmarks suggest a healthy RTO rate is below 15%. Rates above 25% significantly impact profitability.

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Forward Shipping Cost per Order

  • Default: ₹60
  • Type: Currency (min: 0)
  • Prefix: ₹
  • Description: Cost to ship each order from warehouse to customer
  • Impact: Included in RTO loss calculation for returned orders

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Return Shipping Cost per RTO

  • Default: ₹60
  • Type: Currency (min: 0)
  • Prefix: ₹
  • Description: Cost to ship returned orders back to warehouse
  • Impact: Added to RTO loss per order (forward + return + product cost)

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Product Cost per Order

  • Default: ₹500
  • Type: Currency (min: 0)
  • Prefix: ₹
  • Description: Cost of goods sold (COGS) for each order
  • Impact: Represents blocked inventory or potential loss for RTO orders

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Validation Rules

  • All numeric fields accept only positive numbers or zero
  • Percentage fields are capped at 100%
  • Empty fields default to 0 (except percentage fields which retain their value)
  • Values are parsed as floats to support decimal inputs

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Reset Functionality

The “Reset” button (InputSection.jsx:36-43) restores all inputs to their default values: 
const handleReset = () => {
  setData(defaultData);
};
Use the Reset button to quickly return to example data if you want to compare different scenarios.

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Data Persistence

All input values are automatically saved to browser localStorage (App.jsx:43) whenever they change, ensuring your configuration persists across sessions: 
useEffect(() => {
  localStorage.setItem('rtoSimulatorData', JSON.stringify(data));
}, [data]);

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Example Configuration

Here’s a sample configuration for a mid-sized e-commerce business:
InputValue
Monthly Orders15,000
Average Order Value₹1,200
COD Percentage45%
RTO Percentage18%
Forward Shipping₹50
Return Shipping₹50
Product Cost₹400
This would result in approximately 1,215 RTO orders per month with significant financial impact.

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How Inputs Drive Calculations

These inputs feed into the calculateMetrics() function (calculations.js:1-57) which computes:
  • Total Revenue: monthlyOrders × averageOrderValue
  • COD Orders: monthlyOrders × (codPercentage / 100)
  • RTO Orders: codOrders × (rtoPercentage / 100)
  • RTO Loss per Order: forwardShippingCost + returnShippingCost + productCost
  • Total RTO Loss: rtoOrders × rtoLossPerOrder
See Metrics Display for detailed calculation breakdowns.