Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Total monthly returns cost
$8,730
Cost per return
$24.25
Returns per month
360
Returns cost as % of revenue
7.9%
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How to use this
- 1Enter units sold per month.
- 2Enter return rate (%).
- 3Enter average order value ($).
- 4Enter return shipping cost ($).
- 5Enter restocking labor/processing cost ($).
- 6Enter % of returns unresellable at full value (%).
- 7Read your total monthly returns cost on the right — it updates as you type.
- 8Hit Share to keep the scenario or send it to someone.
About this calculator
Ecommerce return rates average 15-30% depending on category (apparel runs highest), and each return costs far more than the refunded amount because you also eat outbound shipping, often pay for a return label, and spend labor restocking or scrapping the item if it can't be resold at full price. This calculator takes your monthly order volume, return rate, average order value, outbound and return shipping costs, and restocking labor cost, plus the percentage of returned items that can't be resold at full value, to compute total monthly returns cost and cost as a percentage of revenue. Enter units sold per month, return rate, AOV, shipping costs both directions, restocking cost per unit, and the percentage of returns that become a total loss or deep discount. The output shows total monthly returns cost, cost per return, and returns cost as a percentage of revenue, which is the number to compare against tightening size charts, improving product photography, or changing your return policy.
Worked example
Using the values the calculator loads with:
Inputs
- Units sold per month: 2000
- Return rate: 18 %
- Average order value: 55 $
- Return shipping cost: 7 $
- Restocking labor/processing cost: 3.5 $
- % of returns unresellable at full value: 25 %
Results
- Total monthly returns cost: $8,730
- Cost per return: $24.25
- Returns per month: 360
- Returns cost as % of revenue: 7.9%
What each field means
Inputs
- Units sold per month
- The units sold per month used in the calculation. Starts at 2000 so you have a working example on load.
- Return rate (%)
- The return rate used in the calculation, measured in %. Starts at 18 % so you have a working example on load. Accepted range: 0–100 %.
- Average order value ($)
- The average order value used in the calculation, measured in $. Starts at 55 $ so you have a working example on load.
- Return shipping cost ($)
- The return shipping cost used in the calculation, measured in $. Starts at 7 $ so you have a working example on load.
- Restocking labor/processing cost ($)
- The restocking labor/processing cost used in the calculation, measured in $. Starts at 3.5 $ so you have a working example on load.
- % of returns unresellable at full value (%)
- The % of returns unresellable at full value used in the calculation, measured in %. Starts at 25 % so you have a working example on load. Accepted range: 0–100 %.
Results
- Total monthly returns cost
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Cost per return
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Returns per month
- Returned as a whole number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Returns cost as % of revenue
- Returned as a percentage. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Why does this cost more than just the refund amount?
The refund itself isn't a new cost, it's giving back money you already collected. The real added cost is outbound shipping you already spent, return shipping you now pay, restocking labor, and the markdown or write-off if the item can't be resold as new, all of which are pure losses on top of the refund.
What return rate is normal for my category?
Apparel and footwear often run 20-40% due to sizing issues, general merchandise runs 8-15%, and electronics or consumables typically run under 10%. Compare your rate to category norms before assuming something is broken in your product or listing.
What's the highest-leverage way to cut returns cost?
For apparel, better size guides and fit-prediction tools often cut return rate by 20-30% relative. For general merchandise, better product photography and more detailed descriptions that set accurate expectations reduce 'not as described' returns, which are usually the most preventable category.
Should I charge a return shipping fee?
It reduces your direct cost per return and can discourage frivolous ordering-to-try behavior, but it also measurably lowers initial purchase conversion in most tests. Model the tradeoff using your own conversion rate sensitivity before implementing a blanket return fee.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
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Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Returns Rate Cost Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/returns-rate-cost
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/returns-rate-cost" target="_blank" rel="noopener">Returns Rate Cost Calculator — RevenueLab</a> (2026).</p>
Source: [Returns Rate Cost Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/returns-rate-cost) (2026).