Return Rate Calculator
See your return rate and its true cost, including lost margin, return shipping, restocking and unsellable stock, not just refunded revenue.
Your numbers
Your result · updates as you type
Return rate
7%
168 of 2,400 orders came back, costing about $7,048 once lost margin, return shipping, restocking and write-offs are counted: 4.5% of total revenue.
- Cost per return
- $41.96
- Total cost of returns
- $7,048
- Cost as % of total revenue
- 4.5%
Refunded revenue itself isn't a cost (you never really earned it once it's reversed): the real cost is what you already spent to ship, then process, the order. That's why this counts lost margin, not lost revenue.
Breakdown
- Return rate
- 7%
- Revenue on returned orders
- $10,920
- Lost margin per return
- −$27.30
- Return shipping per return
- −$6.00
- Restocking labor per return
- −$3.00
- Unsellable write-off (15% of returns)
- −$5.66
- True cost per return
- $41.96
- Total cost of returns
- $7,048
Why refunded revenue isn't the real cost
Refunding an order isn't itself a cost: you're just giving back money you didn't really earn. The real cost is everything you already spent to ship the order, then process the return: the margin you lost on a sale that reversed, return shipping, restocking labor, and a write-off for stock you can't resell.
Example: the default numbers
- Orders shipped / returned
- 2,400 / 168
- AOV / gross margin
- $65 / 42%
- Return shipping / restocking / unsellable share
- $6 / $3 / 15%
Return rate is 168 ÷ 2,400 = 7%. Cost per return is $27.30 (lost margin) + $6 + $3 + $5.66 (unsellable write-off) = $41.96. Total cost of returns is 168 × $41.96 = $7,048, about 4.5% of total revenue.
Where to find your own numbers
- 01
Return count
Shopify's Orders list can be filtered by return status, or use a returns-management app for a store-wide count. For a full analysis from an orders export, see the Shopify orders analyzer.
- 02
Unsellable share
Check your warehouse or 3PL's disposition report: it usually splits returns into restock, refurbish and scrap.
- 03
Cutting the true cost
Sizing guides and better product photos cut "wrong expectations" returns; a clear no-return policy on final-sale items cuts the unsellable share.
Questions people ask
What's a normal return rate for ecommerce?
It varies enormously by category: apparel typically runs much higher than accessories or consumables. Track your own trend and compare it against the true cost, not just the percentage.
Why isn't refunded revenue counted as a cost here?
Because you're only giving back money from a sale that's now reversed, not losing money you'd otherwise have kept. The real costs are what you already spent to fulfill and then process the return.
What counts as an unsellable return?
Anything damaged, used, or in a category you can't restock for hygiene or policy reasons (intimates, swimwear, pierced jewelry are common examples). Check your fulfillment provider's disposition report for your actual share.
How do I lower my return rate?
Better sizing guides and product photos are the biggest levers for "not what I expected" returns. For sizing specifically, a sizing and fit tool on the product page often helps more than policy changes.
Related tools
Want this builtinto your store?
I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.
Emmanuel Asika
Shopify & WooCommerce developer, Dublin
I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.
Last reviewed 30 September 2026.