eCommerce Analytics
Merchant Refund & Return Cost Calculator
Estimate the true cost of returns and refunds on your business. Understand how refunds affect revenue, profit, and operational costs.
Refund Impact Calculator
Calculate how refunds and returns are affecting your bottom line
Enter your metrics and click calculate to see results
What Is a Refund & Return Cost Calculator?
This calculator helps merchants determine how much money they lose to product returns and refunds after including associated costs like shipping and restocking.
🧮 Example Calculation
Sales: $50,000
Orders: 1,000
Returns: 80
Shipping Cost: $8
Restocking Cost: $3
Refund Rate = 80 / 1,000 × 100 = 8%
Refunded Amount = $50,000 × 0.08 = $4,000
Return Shipping = $640
Restocking = $240
Total Refund Impact = $4,880
Net Revenue After Refunds = $45,120
💡 Why It Matters
Hidden Costs
Refund costs can erode profits beyond just the refunded amount
Pricing Strategy
Helps plan product pricing and margins
Policy Optimization
Informs better return policies
Cash Flow Planning
Improves forecasting for cash flow
⚙️ How to Reduce Refund Losses
Store Credit
Offer store credit instead of cash refunds
Better Descriptions
Improve product descriptions to reduce misorders
Automated RMA
Use automated RMA systems
Analyze Reasons
Regularly analyze return reasons