Return cost calculator
The refund is the visible part of a return. This calculator adds the parts that never appear in a sales report.
- Returns per month
- 216
- True cost per return
- €19.69
- Monthly return cost
- €4,253
On top of that, €15,552 of revenue is refunded each month. The handling cost above is what stays with you after the refund.
The formula
- Cost per return = outbound shipping + return shipping + handling and repackaging + (share not resellable % × unit COGS) − restocking fee recovered.
- Returns per month = orders × return rate %.
- Monthly return cost = cost per return × returns per month, on top of the refunded revenue.
Worked example
1,200 orders at €72 average value with an 18% return rate gives 216 returns per month.
At €5.90 out, €6.40 back, €3.50 handling and 12% of a €32.40 unit cost written off, each return costs €19.69.
That is €4,253 per month in handling cost, on top of €15,552 of refunded revenue.
How to use the result
- ◆Measure return rate per product, not per store — the average hides the products causing it.
- ◆Record return reasons; fit and expectation issues are the ones you can actually reduce.
- ◆Re-run this after changing product pages for your worst offenders.
Frequently asked questions
Should refunded revenue count as a cost?+
Deduct it from revenue rather than counting it twice as a cost. The number this calculator produces is the extra cost that stays with you after the refund.
What is a normal return rate?+
It depends heavily on category and country — fashion in Germany looks nothing like supplements in Spain. Our benchmark pages show typical ranges per market.