Chargeback Cost Calculator
Estimate the real cost of a chargeback, including refunded revenue, product cost, shipping, chargeback fees, lost fees, and admin time.
- Free calculator
- Instant estimate
- No signup needed
- Beginner friendly
Enter every amount in the same currency. This selector only changes the symbol shown — it does not convert exchange rates.
Order details
Dispute costs
What your payment processor charges per dispute.
Fees from the original sale you don't get back.
Monthly view (optional)
Optional. Leave blank or 0 to see a single dispute only.
True chargeback loss
$145.85
1.8× the order amount
Admin time cost
$18.75
0.75 hours
Lost revenue + product
$100.00
Fees on the dispute
$17.60
Monthly chargeback cost
$291.70
2 per month
Annual chargeback cost
$3,500.40
What this means
This calculator is for planning only. Chargeback rules vary by payment processor and selling platform, and none of this is legal, tax, financial, or platform-policy advice.
All calculations are estimates based on average platform fees. Real profits may vary depending on category, ads, and shipping.
Free worksheet for your next step
Turn this calculator result into a plan with a matching worksheet, checklist, or printable resource.
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Return & Refund Decision Worksheet
Work through one return or refund at a time: capture the order issue, add up the real cost, compare refund, replacement, and return-shipping options, then log the outcome.
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How to use this calculator
- Enter your numbers in each field above — the calculator updates instantly as you type, so there's nothing to submit.
- Use your real figures when you have them, or sensible estimates while you're planning. If a field doesn't apply, leave it at zero.
- Compare the results, then change one input at a time to see how each lever (price, cost, fees, volume) moves the outcome.
Formula
Admin time cost = (Admin minutes ÷ 60) × Hourly rate · True chargeback loss = Order amount + Product cost + Shipping + Packaging + Chargeback fee + Lost fees + Admin time cost · Monthly = Loss × Chargebacks per month
Worked example
$80 order, $20 product, $8 shipping, $1.50 packaging, $15 chargeback fee, $2.60 lost fees, 45 minutes at $25/hour, 2 per month.
- Admin time = 0.75 × 25 = $18.75
- True loss = 80 + 20 + 8 + 1.50 + 15 + 2.60 + 18.75 = $145.85
- Monthly = 2 × 145.85 = $291.70
Answer: ≈ $145.85 per chargeback, ≈ $291.70 per month
How it works
A chargeback is not a refund. You lose the revenue and the product, you pay a dispute fee, you don't get the original payment fees back, and you spend time gathering evidence. That's why fast, friendly customer replies are almost always cheaper than a dispute.
How to interpret your results
- Dollar values are shown per sale, per order, or per item unless a result is explicitly labelled monthly, weekly, or daily.
- Percentages (margin, ROI, conversion rate) are easier to compare across products and price points than raw dollars — use them when you benchmark.
- A positive result means you're ahead after the costs and fees you entered. A negative result means the current numbers don't work — change a lever (raise price, cut a cost, lower ad spend) and recalculate.
- Treat the output as a planning estimate, not a guarantee. Fees, taxes, and conversion rates shift over time — re-run the numbers whenever a key input changes.
Common mistakes
- Treating a chargeback as equal to a refund.
- Forgetting the dispute fee and the unrecoverable payment fees.
- Ignoring your own admin time — evidence gathering is real work.
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FAQ
- Are chargebacks more expensive than refunds?
- Almost always. A chargeback adds a dispute fee and admin time on top of the same lost revenue, product, and shipping a refund costs.
- Can I prevent chargebacks?
- Clear listings, tracked shipping, fast replies, and proactive refunds on genuine problems remove most of the reasons a buyer opens a dispute.
- Is this tax, legal, or platform-policy advice?
- No. This calculator is for planning only. Chargeback rules vary by payment processor and selling platform.
Why trust this calculator?
This tool uses standard mathematical formulas and commonly accepted calculation methods, shown openly in the Formula section above so you can verify the math yourself. Results are estimates based on the information you enter and do not account for every individual circumstance. For important financial, tax, legal, medical, or business decisions, please double-check with a qualified professional before acting on the numbers.
Keep going
One calculator rarely tells the full story. Pair this one with a related tool below to pressure-test your numbers from a different angle, or browse Selling & Business Calculators for more in the same category.
What to calculate next
You may also find these tools helpful.
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Net loss on a refund after every recoverable and unrecoverable cost.
Return & Refund Cost Calculator
True monthly and annual cost of returns and refunds for ecommerce sellers.
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How a partial refund affects order profit.
Return Rate Impact Calculator
Monthly and annual profit lost to returns.
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