Enter your monthly revenue and refund rate to see exactly how much profit you're losing to returns. Calculates the true cost of refunds including absorbed shipping and processing fees.

Order Economics

Selling priceThe price the customer pays per order.?

Product cost + shippingYour combined cost of goods and outbound shipping per order.?

Refund Details

Refund ratePercentage of orders that result in a refund or return.?

Orders per monthYour average number of orders in a month.?

Restocking / processing cost per refundExtra cost per refund for restocking, processing, or return shipping.? Optional

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Quick Tips

Fashion and electronics have the highest return rates — 15–30%. If you're in these categories, model your unit economics at a 20% refund rate by default, not 5%.

Offering exchanges instead of refunds saves 40–60% of return revenue. Most customers return because something didn't fit or wasn't right — an exchange keeps them as customers.

Free return shipping increases purchase conversion but kills margin. Model the full impact before offering it — the lift in conversion rarely fully offsets the cost on high-return products.

A clear size guide can reduce fashion returns by up to 50%. Most fashion returns are sizing issues. Better product pages and fit guides are cheaper than processing returns.

Refund Impact Calculator

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