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Refund Impact On Revenue Calculator

Work out refund impact on revenue instantly with clear inputs, formula shown and shareable results.

About Refund Impact On Revenue Calculator

A refund removes the revenue and the margin, and only part of the stock cost is recovered if the item can be resold. That is why refund rate hits profit harder than it hits the revenue line.

Formula

Refund impact

Profit lost = refunded × margin + refunded × cost share × (1 - resale recovery)

Worked example

With the default values below, Refund Impact On Revenue Calculator returns Net Revenue After Refunds of $8,190,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Gross Revenueminimum 0
9,000,000
Refund Rateaccepts 0–60 %
9 %
Gross Marginaccepts 1–100 %
44 %
Share Of Refunded Goods Resoldaccepts 0–100 %
60 %

Results

Net Revenue After Refunds
$8,190,000.00
Revenue Refunded
$810,000.00
Gross Profit Lost
$537,840.00
Stock Cost Not Recovered
$181,440.00

Step by step

  1. 1Values used
  2. 2Refund impact
  3. 3Net Revenue After Refunds= 8,190,000.00
  4. 4Revenue Refunded= 810,000.00
  5. 5Gross Profit Lost= 537,840.00
  6. 6Stock Cost Not Recovered= 181,440.00

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, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 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 profit fall more than revenue?

Because the margin is lost entirely while some of the cost of goods is also unrecoverable.

Should refunds be netted in reporting?

Yes. Reporting gross revenue in a high-refund category systematically overstates the business.

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