Return & Refund Cost Calculator
Estimate what returns cost you each month. It combines the gross profit lost on refunded orders with any return shipping you pay for.
Who it's for: Apparel and product sellers dealing with sizing returns, and anyone deciding on a returns policy.
How to use it
- Enter monthly revenue and average margin.
- Enter your return rate.
- Enter your average order value so the tool can estimate the number of returns.
- Enter what you pay in return shipping per return and read the impact.
Assumptions
Returned revenue = revenue × return rate. Returns per month = returned revenue ÷ average order value. Lost profit = returned revenue × margin (assumes items are restocked). Shipping loss = returns × return shipping cost. If returned items cannot be resold, your real loss is higher. Defaults are examples.
Results are estimates for planning, not tax, legal or financial advice. All figures are editable.
Related tools
Go further
Want this in a spreadsheet you can keep? The Customer Care SOP Pack (Refund & Return Policy SOP, Chargeback Dispute Letter, Review Reply Macros, Google Docs) is a ready-made template.