Returns Processing Cost Calculator

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

About Returns Processing Cost Calculator

Returns processing cost is labour time plus repackaging and restocking materials. Because inspection and grading are judgement tasks that resist automation, labour dominates — which is why reducing return rates is far more effective than processing them faster.

Formulas

Labour cost

Labour = Returns x Minutes per return / 60 x Loaded hourly cost

Cost per return

Per return = (Labour cost + Repackaging cost) / Returns processed

Worked example

With the default values below, Returns Processing Cost Calculator returns Processing cost per return of $128.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Returns processed in the period: 4,800
Processing minutes per return: 9
Loaded labour cost per hour: 420
Repackaging and restocking cost per return: 65

Results

Processing cost per return: $128.00
Total processing cost: $614,400.00
Labour cost: $302,400.00
Repackaging and restocking cost: $312,000.00

Step by step

1Values used
2Labour cost
3Cost per return
4Processing cost per return= 128.00
5Total processing cost= 614,400.00
6Labour cost= 302,400.00
7Repackaging and restocking cost= 312,000.00

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 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.

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

Frequently Asked Questions

What drives processing time?

Grading decisions, testing electricals, cleaning and repackaging to a saleable standard. Simple size-exchange returns are much faster.

How do I reduce return volume?

Better size guidance and product imagery, accurate descriptions, and identifying products and customers with abnormal return rates.