Should I charge restocking fees?

If returns are a regular cost, a small restocking fee on non-defective returns often pays for itself. Check platform rules.

What if the item comes back damaged?

Set resale value to 0 or the salvage value only — otherwise you'll overstate what you recovered.

What numbers do I need to start?

The original order price, your product cost, outbound and return shipping, packaging, the refund amount, any restocking fee you keep, resale value, and the fees the platform doesn't refund.

What's the difference between a return, a refund, and a replacement?

A return means the item comes back to you. A refund is the money going out, with or without the item returning. A replacement means you ship a second unit instead of refunding — sometimes cheaper than paying return shipping.

Which fees usually aren't refunded?

Payment-processing percentages and fixed transaction fees are commonly kept by the platform even on a full refund. Check your platform's current policy and enter what applies.

Should I ask the customer to pay return shipping?

It depends on the reason and your platform's rules. If the item was faulty or wrongly described, you normally pay. For change-of-mind returns, many sellers pass the cost on — compare both outcomes here first.

Return Cost Calculator

Calculate the real cost of a return — outbound shipping, return shipping, packaging, non-refunded fees, and any recovery from restocking or resale.

Free calculator
Instant estimate
No signup needed
Beginner friendly

Display currency

Enter every amount in the same currency. This selector only changes the symbol shown — it does not convert exchange rates.

Original order price ($)

Product cost ($)

Original shipping paid ($)

Return shipping paid ($)

Packaging ($)

Refund amount to customer ($)

Restocking fee kept ($)

Resale value of item ($)

Fee % not refunded

Fixed fee not refunded ($)

Net loss on return

−$24.50

Low Profit / Needs Optimization

Total money out

$64.50

Recovered

$0.00

Restock + resale

Non-refunded fees

$1.50

This return costs you $24.50 on top of the refund. Consider a restocking fee or requiring the customer to pay return shipping.

Short example

A $40.00 order fully refunded with $6.00 outbound and $6.00 return shipping, $10.00 product cost, and $1.50 non-refunded fees leaves a net loss of roughly $24.50 — plus lost time.

All calculations are estimates based on average platform fees. Real profits may vary depending on category, ads, and shipping.

This calculator is a planning estimate only and is not legal, tax, financial, or platform-policy advice.

Free worksheet for your next step

Turn this calculator result into a plan with a matching worksheet, checklist, or printable resource.

WorksheetGeneral
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.
Open the worksheet →
WorkbookGeneral
Seller Profit Workbook
Track revenue, expenses, fees, profit margins, break-even points, and product performance across any online selling business.
Open the worksheet →

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.

When to use this calculator

When a return request arrives and you need the real cost before choosing how to resolve it.
Before writing or updating your returns policy.
When deciding whether a restocking fee or 'keep it, refund it' saves more money.
After a run of returns, to see how much they cost you in total.

Formula

Net = (Price + Restock kept + Resale value) − (Product cost + Original shipping + Return shipping + Packaging + Refund + Non-refunded fees)

Worked example

$40 order fully refunded, $10 cost, $6 outbound, $6 return shipping, $1 packaging, 3% + $0.30 non-refunded fees.

Money in = $40
Money out = 10 + 6 + 6 + 1 + 40 + 1.50 = $64.50
Net = −$24.50

Answer: ≈ $24.50 net loss on the return

How it works

A refund isn't the only cost — the shipping both ways, the packaging, and the platform's non-refunded fees stack quickly. Knowing the real number tells you whether a restocking fee or a 'keep it, refund it' policy would save more.

Expert tips

Add the return shipping cost twice in your head when the item also needs reshipping — outbound, return, and reship all count.
Log the return reason next to the cost. Repeated reasons point at a listing or packaging fix worth more than any policy change.
Set resale value honestly — opened or damaged items rarely resell at full price.
For low-value items, compare the return cost against simply refunding and letting the customer keep it.

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

Calling the refund the 'cost' — the shipping and fees usually double it.
Ignoring resale value on items in good condition.
Not counting the labor to inspect and repackage.

Go deeper with plain-English guides on the same topic.

FAQ

Should I charge restocking fees?: If returns are a regular cost, a small restocking fee on non-defective returns often pays for itself. Check platform rules.
What if the item comes back damaged?: Set resale value to 0 or the salvage value only — otherwise you'll overstate what you recovered.
What numbers do I need to start?: The original order price, your product cost, outbound and return shipping, packaging, the refund amount, any restocking fee you keep, resale value, and the fees the platform doesn't refund.
What's the difference between a return, a refund, and a replacement?: A return means the item comes back to you. A refund is the money going out, with or without the item returning. A replacement means you ship a second unit instead of refunding — sometimes cheaper than paying return shipping.
Which fees usually aren't refunded?: Payment-processing percentages and fixed transaction fees are commonly kept by the platform even on a full refund. Check your platform's current policy and enter what applies.
Should I ask the customer to pay return shipping?: It depends on the reason and your platform's rules. If the item was faulty or wrongly described, you normally pay. For change-of-mind returns, many sellers pass the cost on — compare both outcomes here first.

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.

What to calculate next

Once you know what this return really costs, compare the resolution paths side by side: full refund, replacement, or asking the customer to cover return shipping. Then check what returns are doing to your monthly profit.

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Short example

Free worksheet for your next step

Return & Refund Decision Worksheet

Seller Profit Workbook