Collecting PKR 1,600 from a customer does not mean PKR 1,600 will reach your bank account. A COD arrangement may deduct collection charges, withholding and courier service from the transfer. The COD calculator makes those assumptions visible alongside the costs of fulfilling the order.
Record both parts of the customer payment
Use PKR 1,500 as the item price and PKR 100 as shipping collected. Enter product cost PKR 800, packaging PKR 50, actual courier cost PKR 200 and advertising PKR 100. Customer receipts total PKR 1,600; the included business costs total PKR 1,150.
For this example only, set the COD charge to 2% plus PKR 20. That produces PKR 52 of COD fees. An entered withholding rate of 2% produces a separate PKR 32 cash deduction. Your courier contract may use different figures, which must replace these assumptions.
Read profit and payout beside each other
Profit before withholding is PKR 398: PKR 1,600 minus PKR 1,150 minus PKR 52. When shipping is paid separately, payout after the COD charge and withholding is PKR 1,516.
Switch shipping settlement to deducted and the transfer becomes PKR 1,316. The PKR 200 difference is courier cost collected from the payout. It does not create a second expense, so the profit estimate remains PKR 398.
Do not enter the customer’s shipping charge as your courier expense
PKR 100 collected for delivery and PKR 200 spent on delivery are different inputs. Entering PKR 100 in both fields would hide the seller’s delivery subsidy. The Shipping Charge & Subsidy Calculator calculation can examine that subsidy on its own.
Use the courier invoice for the actual service charge, including applicable additions that you intend to include. If you enter a combined courier total, avoid adding the same collection charge again under another cost field.
Delivery success is outside this single order result
This calculation describes an order under the entered settlement assumptions. It does not predict how many parcels will return undelivered. Use COD RTO Expected Profit Calculator when failed delivery costs need to be spread across a dispatch batch.
Keep the remittance date with your records as well. A profitable delivered order can still tie up working cash while payment is pending. When the courier statement arrives, reconcile its deductions before treating this estimate as a confirmed transfer.