Reverse Logistics Cost Calculator

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

About Reverse Logistics Cost Calculator

Reverse logistics is only worth doing where recovery value exceeds collection and processing cost. For low-value items the net figure is negative, which is why many retailers instruct customers to keep or dispose of returns below a value threshold.

Formulas

Cost per return

Cost = Collection cost + Inspection and sorting cost

Net value per return

Net = Recovery value - Cost per return

Worked example

With the default values below, Reverse Logistics Cost Calculator returns Net monthly recovery of $768,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Returns per month: 3,200
Collection or inbound freight per return: 280
Inspection and sorting cost per return: 120
Average recovery value per return: 640

Results

Net monthly recovery: $768,000.00
Monthly reverse logistics cost: $1,280,000.00
Cost per return processed: $400.00
Net value per return: $240.00

Step by step

1Values used
2Cost per return
3Net value per return
4Net monthly recovery= 768,000.00
5Monthly reverse logistics cost= 1,280,000.00
6Cost per return processed= 400.00
7Net value per return= 240.00

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 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.

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

Frequently Asked Questions

When should a return not be collected?

When the recovery value is below the collection and processing cost. Refunding without return is cheaper and improves the customer experience.

What raises recovery value?

Fast turnaround back to resale, good grading discipline, and secondary channels for graded stock rather than defaulting to scrap.