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Chargeback Cost Calculator

Work out chargeback cost instantly with clear inputs, formula shown and shareable results.

About Chargeback Cost Calculator

A chargeback costs the goods, the revenue and a fee, so the total loss usually exceeds the order value. Card schemes also monitor the rate, and breaching roughly one percent triggers remediation programmes and penalties.

Formula

Chargeback cost

Cost = chargebacks × (order value + fee); rate = chargebacks / transactions

Worked example

With the default values below, Chargeback Cost Calculator returns Total Cost Of Chargebacks of $184,500.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Chargebacks In The Periodaccepts 0–1,000,000
45
Average Order Valueminimum 0
2,600
Fee Per Chargebackminimum 0
1,500
Total Transactionsaccepts 1–10,000,000
9,000

Results

Total Cost Of Chargebacks
$184,500.00
Chargeback Rate
0.5000%
Chargeback Fees Paid
$67,500.00
Risk Assessment
Within normal limits

Step by step

  1. 1Values used
  2. 2Chargeback cost
  3. 3Total Cost Of Chargebacks= 184,500.00
  4. 4Chargeback Rate= 0.5000
  5. 5Chargeback Fees Paid= 67,500.00
  6. 6Risk Assessment= Within normal limits

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.

Frequently Asked Questions

Why does the rate matter as much as the cost?

Because exceeding scheme thresholds can lead to fines, higher reserves or loss of card acceptance entirely.

How are chargebacks reduced?

Clear billing descriptors, prompt refunds, delivery confirmation and fraud screening on high-risk orders.

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