Return Rate Impact Calculator
Calculate the true margin impact of product returns.
Inputs
$
%
$
$
$
%
Results
Monthly Return Cost
$7,200.00
Returned Orders218
Returned Revenue$12,000.00
Lost Margin on Returns$4,800.00
Effective Margin (After Returns)37.3%
True Net Margin32.8%
Annual Return Cost$86,400.00
How to Use This Calculator
- Enter Monthly Revenue and current Return Rate (%).
- Input Average Order Value, Return Shipping Cost, and Restocking Cost per return.
- Set Gross Margin (%) to calculate the revenue impact of returns.
- Review Monthly Return Cost and the effective margin after returns.
- Use this data to justify investment in better product photography, sizing guides, or quality control.
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