What is the Returns Impact Calculator?
A return rate profit calculator shows how much returns really cost. Each return can lose the original outbound shipping, the return label and handling, the margin on the refunded sale and, if the item can’t be resold, the product itself: loss = returns × (return + outbound shipping) + refunded returns × AOV × margin + unsellable returns × product cost.
Example: 1,000 orders a month at $70 with a 50% margin and a 12% return rate (80% refunded, 70% resellable, $9 return handling and $6 outbound shipping) lose $6,420 a month — about 18% of gross profit, or $53.50 per return.
How to use the Returns Impact Calculator
- Enter Orders per month, Average order value and Gross margin.
- Enter your Return rate and the Share refunded (vs exchanged/store credit).
- Set Returned items resellable, Return shipping & handling per return and Original outbound shipping (lost).
- Read the monthly profit lost, its share of gross profit, cost per return and the saving if your return rate fell 2 points.
Why use AnyShift's Returns Impact Calculator
Instant resultsNumbers update as you type — no submit button, no page reloads.
Formula shownEvery result shows how it was calculated so you can check the maths.
Editable assumptionsRates, fees and defaults are pre-filled but always adjustable.
Private by designCalculations run in your browser. Nothing is stored or sent.
Popular use cases
- Building the business case for better size guides or product photos
- Deciding whether to offer free returns
- Comparing refunds with exchanges or store credit
- Setting a return-rate target for a product line
Where the money goes: example breakdown
| Cost | Monthly | How it is calculated |
|---|---|---|
| Returns per month | 120 | 1,000 orders × 12% |
| Lost margin on refunds | $3,360 | 120 × 80% × $70 × 50% |
| Unsellable stock write-off | $1,260 | 120 × 30% × $35 product cost |
| Return logistics | $1,800 | 120 × ($9 + $6) |
| Total | $6,420 | $53.50 per return |
Frequently asked questions
What is the average ecommerce return rate?
It varies widely by category. US surveys such as the National Retail Federation’s annual returns report have put total retail returns at roughly 15–17% of sales in recent years, with online orders and apparel typically higher and consumables much lower.
How can I reduce returns?
Better size guides, real customer photos, accurate descriptions and offering exchanges or store credit instead of refunds. Track return reasons by product to find the worst offenders.
Why do exchanges cost less than refunds?
An exchange or store credit keeps the sale, so you still pay return handling and shipping but keep the margin. Cutting the refunded share from 80% to 50% in the example lowers lost margin from $3,360 to $2,100 a month.
How much does a return cost an online store?
Add return shipping and handling, the outbound shipping you can’t recover, the margin on refunded orders and the cost of items you can’t resell. In the example each return costs $53.50 — far more than the $9 return label.
Should I offer free returns?
Free returns can lift conversion but usually raise the return rate too. Model both: enter the higher return rate you expect and compare the extra monthly loss with the profit from additional orders.
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Last reviewed: Built for: United States, United Kingdom, Canada, Australia Part of Ecommerce & Sellers