Free tool

Returns calculator: what do returns cost you?

Enter orders, return rate and cost per return. You see the cost per month and per year.

In short: Cost per return = return shipping + handling + loss on unsellable goods. With 500 orders, 12% returns and about €7 per return that is over €400 a month, plus the refunded revenue.

Your inputs

%
%

The rest counts as a loss equal to the cost of goods.

Your result

Return costs per month
€552
60 returns, €9.20 each
Per year
€6,624
Cost per order (all orders)€1.10
Refunded revenue per month€3,600

Excluding lost contribution margin and payment fees. Nothing is saved or sent.

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Returns cost margin. How much is left in the end?

Calculate profit per sale including returns in the margin calculator.

How to calculate return costs: what really counts

Returns look like a side issue but are often one of the biggest cost items in an online store.

Formula

Cost per return = return shipping + handling + (1 − share resellable) × cost of goods. Monthly cost = returns × cost per return.

Note

Lost contribution margin and payment fees are not included. Both reduce profit further.

The calculator runs entirely in your browser. Your inputs are not saved and not sent anywhere. All figures without guarantee.

Frequently asked questions

What belongs in return costs?

Return shipping, handling, value loss on unsellable goods and payment fees that are not refunded.

How do I lower the return rate?

With accurate sizing, good photos, reviews with size feedback and an analysis of the most common reasons.

Who pays return shipping?

That depends on your terms and applicable law. Have it checked legally, the calculator gives no legal advice.