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Return Rate Cost Calculator

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

About Return Rate Cost Calculator

Returns cost more than the refund: inbound shipping, inspection, restocking and markdown on reopened items all add up. Treating that processing cost as a share of order value keeps the estimate simple and comparable.

Formula

Cost of returns

Cost = orders × return rate × order value × (1 + processing cost share)

Worked example

With the default values below, Return Rate Cost Calculator returns Total Cost Of Returns of $5,806,080.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Orders In The Periodaccepts 1–100,000,000
12,000
Return Rateaccepts 0–80 %
18 %
Average Order Valueminimum 0
2,400
Processing Cost As Share Of Order Valueaccepts 0–60 %
12 %

Results

Total Cost Of Returns
$5,806,080.00
Revenue Refunded
$5,184,000.00
Return Processing Cost
$622,080.00
Number Of Returns
2,160

Step by step

  1. 1Values used
  2. 2Cost of returns
  3. 3Total Cost Of Returns= 5,806,080.00
  4. 4Revenue Refunded= 5,184,000.00
  5. 5Return Processing Cost= 622,080.00
  6. 6Number Of Returns= 2,160

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 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

Which category has the worst return rates?

Apparel and footwear, where fit uncertainty routinely pushes returns above a quarter of orders.

How are returns reduced?

Better size guidance, richer imagery and honest descriptions cut returns far more than restrictive policies.

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