Return Rate Cost Calculator
Work out your return rate and what returns really cost, counting lost profit, handling and stock you can't resell, per return and per order shipped.
- Free
- No sign-up to try
- Works as you type
Cost of returns
Return rate
9.0%
Cost per return
$64.00
Total cost of returns
$11,520
Returns cost per order shipped
$5.76
- Return rate = orders returned ÷ orders shipped × 100.
- Cost per return = lost gross profit (order value × margin) + handling + product cost you can't resell.
- Unsold product = order value × (1 − margin) × share you can't resell.
- Per order shipped = total cost of returns ÷ orders shipped.
Free, no sign-up to try. Save it as a live calculator you can share; an estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
How it works
How the Return Rate Cost Calculator works
- 1
Enter your numbers
Every result updates as you type, with the formula shown under it.
- 2
Check the method
See how each number is worked out and what it assumes.
- 3
Save it as a Room
Share a live calculator: others can change the numbers and see the result update.
Worked example
What it makes
Example inputs
- Orders shipped
- 2,000
- Orders returned
- 180
- Average order value
- $80
- Gross margin
- 50 %
- Handling cost per return (shipping, processing)
- $12
- Returned goods you can resell
- 70 %
Results
- Return rate
- 9.0%
- Cost per return
- $64.00
- Total cost of returns
- $11,520
- Returns cost per order shipped
- $5.76
How it's calculated
- Return rate = orders returned ÷ orders shipped × 100.
- Cost per return = lost gross profit (order value × margin) + handling + product cost you can't resell.
- Unsold product = order value × (1 − margin) × share you can't resell.
- Per order shipped = total cost of returns ÷ orders shipped.
- Assumes: Every return is a full refund of an average order; exchanges and store credit are not modelled.
- Assumes: Resold goods are sold at full price.
An estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
Who it's for
Who uses it
Store owners
See what returns take out of each order's profit.
Ecommerce managers
Size the payoff from better sizing or product pages.
Finance
Put the cost of returns into the margin model.
Good to know
What to consider
- Every return is treated as a full refund of an average order; exchanges are not modelled.
- Resold goods are assumed to sell at full price.
Questions
About the Return Rate Cost Calculator
What does a return cost besides the refund?
The profit you no longer keep, return shipping and handling, and any product you can't sell again. This calculator counts all three.
Can I share the calculator with my team or a client?
Yes. The Room keeps the calculator live: anyone with the link can change the numbers and see the result update, with the method and assumptions on the same page.
Make your calculator now
Free, no sign-up to try. It becomes a Room you can edit, publish and share.
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