Ecommerce return cost calculator
Enter your orders, return rate and the cost of each return to see how returns eat into the profit of every order.
Loading the tool…
Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter orders, return rate, return shipping per return, handling cost per return, product cost and returns that cannot be resold.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Returns = orders × return rate. Cost per return = return shipping + handling + (unsellable share × product cost). Total = returns × cost per return.
Example
Inputs: Orders = 500, Return rate = 8 %, Return shipping per return = 20, Handling cost per return = 5, Product cost = 60. Result: Total return cost: 1,600.00; Number of returns: 40; Cost per return: 40.00.
Limits and caveats
- Refunded revenue is not counted, since it is a sale that did not happen rather than an extra cost.
- It assumes the same cost for every return, while real costs vary by product and city.
Questions about this tool
What is a typical ecommerce return rate?
It varies a lot by category, and fashion usually runs higher than electronics. Use your own rate from order history.
What does the unsellable share mean?
It is the share of returns that come back damaged or opened and cannot be sold at full price, so the product cost is lost.
How do I use the cost per order sold?
Add it to your per-order costs when pricing, since every successful sale has to cover it.