finance Working Capital

COD Cashflow & Remittance Engine

Calculate cash locked in transit, working capital required, and cashflow timeline based on courier settlement delays.

Live Interactive Calculator Client-Side Engine Active

Enter your metrics below to simulate unit margins, max allowable ad spend, and break-even thresholds. All calculations update dynamically in real time.

How It Works & Mathematical Formulas

In Cash On Delivery, couriers take between 7 and 21 days to remit collected cash back to your bank account. If you scale ad spend and product restocking faster than courier cash arrives, your store goes cash-starved.

Capital in Transit

Cash Locked = Daily Outflow × Courier Remittance Lag (Days)

The float of liquidity tied up waiting for logistics company payouts.

How to Use This Calculator Step-by-Step

1

Product Costs & Pricing

Enter your unit cost of goods (COGS), planned retail price, and packaging expenses.

2

Ad Spend & Confirmation

Input expected customer acquisition cost (CPA/CPL) and call-center order confirmation rate.

3

Courier Delivery & Returns

Configure your actual delivery success rate and courier forward and return (RTO) fees.

4

Review Net Margins

Analyze your real cash profit per delivered order and break-even thresholds before spending.

The Cash Gap: 14-Day Payout Lag

Spending 2,000 MAD daily on ads and 2,500 MAD on inventory with courier remittance taking 14 days:

Daily Cash Outflow 4,500 MAD / day
Courier Remittance Delay 14 days
Working Capital Locked in Transit 63,000 MAD required runway
Key Takeaway: You need at least 63,000 MAD in reserve to scale without running out of cash.

Common Pitfalls & Costly Mistakes

Reinvesting paper profit before couriers remit cash

Do not scale ads on money that has not landed in your bank account yet.

Frequently Asked Questions

How can I shorten courier remittance delays?
Negotiate bi-weekly or weekly payouts with logistics agencies once you demonstrate reliable volume of 20+ packages daily.
Comprehensive Methodology Guide

Want to master the exact math and strategy for COD Cashflow & Remittance Engine?

Read Full Guide →

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