Cost of Returns Calculator

See what a return really costs once you add the label, restocking time, support time, write-offs and the payment fee you don't get back.

Your numbers

▾

Your returns

Orders per month

orders

Return rate

Returned orders ÷ orders shipped, from your platform's returns report.

Average order value

Product cost, as a share of price

Cost per return

Return label / pickup cost

Time to receive and restock

min

Warehouse labor rate

$/hr

Support time per return

min

Support labor rate

$/hr

Write-offs and payment fees

Share of returns you can't resell at full price

Cost recovered on those (liquidation, outlet, parts)

Your payment processor keeps its fee on refunds

Stripe: "processing fees from the original transaction aren't returned." Most processors work the same way.

Payment fee (percent)

Payment fee (fixed)

Your result · updates as you type

Monthly cost of returns

$2,366

144 returns a month at $16.43 each: 3.4% of your $69,600 in monthly revenue.

Cost per return: $16.43
Returns per month: 144
Annualized cost: $28,389

This treats every unrecovered dollar as a loss on the order it came from. If you already price in an expected return rate, compare this figure with what you've budgeted.

Where the cost per return comes from

Label

$6.50

Restocking

$1.20

Support

$3.00

Write-off

$3.75

Fee lost

$1.98

Breakdown

Return label / pickup: $6.50
Restocking labor: $1.20
Support time: $3.00
Write-off (20% unsellable, 15% recovered): $3.75
Payment fee kept by processor: $1.98
Cost per return: $16.43
Monthly cost of returns: $2,366

What a return actually costs

The sticker price of a return is the label. The real cost also includes the time to receive and restock it, the support time spent handling the request, whatever share can't be resold at full price, and the part of your payment processing fee you don't get back.

Cost per return = label + restocking labor + support labor + (unsellable share × product cost × (1 − recovery share)) + payment fee kept

Stripe's own refund policy states that processing fees from the original transaction aren't returned when you refund a payment. Most other processors, including WooPayments and Shopify Payments, work the same way, so that fee is a real cost of every return, not just the label.

Cutting the cost, not just measuring it

Sizing and fit. If size is your top return reason, a sizing tool on the product page cuts returns more reliably than a restocking fee, which mostly pushes unhappy customers to a chargeback instead.
Better photos and descriptions. "Not as described" returns are often a content problem, not a product problem.
Track the unsellable share honestly. Categories like swimwear, intimates or opened electronics often have a much higher write-off rate than general apparel: use your own return reason data, not a single number for the whole catalog.

Questions people ask

Do I get my payment processing fee back when I refund an order?

Usually not. Stripe states that processing fees from the original transaction aren't returned on a refund, and most other processors work the same way.

What's a typical return rate for ecommerce?

It varies enormously by category: general merchandise often runs under 10%, while apparel and footwear commonly run 20-30% or higher. Use your own platform's returns report rather than an industry average.

Should I charge a restocking fee?

That's a separate decision from measuring the cost. This calculator shows what a return costs you regardless of whether you charge the customer for any of it.

What counts as an unsellable return?

Anything you can't put back into regular stock at full price: damaged, worn, missing packaging, or a final-sale item a customer returned anyway. Enter your own share and how much of the product cost you recover through liquidation or an outlet channel.

Last reviewed 30 September 2026.

Sources: Stripe docs: Refund and cancel payments