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Free e-commerce return rate cost calculator and reverse logistics cost calculator. Estimate net monthly return cost, recovery from restocking and resale, and cost % of revenue. Use with the returns cost impact calculator.
Last updated: May 24, 2026
Per-order refund modeling? Dropshipping profit calculator
Returned Orders
1,595
Gross Returned Revenue
$108,460
Product Value at Risk
$42,299.4
Reverse Logistics Costs
$22,011
Total Cost Recovery
$26,388.32
Net Monthly Return Cost
$37,922.08
3.85% of gross monthly revenue
Performance: Manageable
Return costs are meaningful but manageable. Improve product detail quality, sizing guidance, and defect prevention to lower return volume.
Optimization Tips
Shipping Losses
$17,066.5
Handling & Processing
$4,944.5
Recovery split: Restocking $6,507.6 + Resale $19,880.72
Answers: how much returns cost per month, what % of revenue you lose, and how much recovery offsets logistics.
11% of 14,500 orders · $108,460 gross returned revenue.
$37,922 after $26,388 recovery · $24/return net.
$42,299 inventory at risk · $22,011 reverse logistics.
Default: 14,500 orders/mo · 11% return rate · $68 AOV
Returns
1,595
Returned revenue
$108,460
Recovery
$26,388
Net cost
$37,922
3.85% of $986,000 gross revenue · Manageable band.
| Metric | Formula | Default example |
|---|---|---|
| Returned orders | Monthly orders × Return % | 14,500 × 11% = 1,595 |
| Gross returned revenue | Returned orders × AOV | 1,595 × $68 = $108,460 |
| Product value at risk | Returned revenue × COGS % | $108,460 × 39% = $42,299 |
| Reverse logistics | (Outbound + Return ship + Processing) × Returns | $13.80/return × 1,595 = $22,011 |
| Total recovery | Restocking % of revenue + Resale % of COGS | $6,508 + $19,881 = $26,389 |
| Net return cost rate | Net cost ÷ Gross monthly revenue × 100 | $37,923 ÷ $986,000 = 3.85% |
| Band | Rate | Action |
|---|---|---|
| Efficient | ≤ 2% of revenue | Maintain PDP quality and reason-code tracking |
| Manageable | 2.01 – 5% | Default 3.85% — reduce fit/size returns |
| Elevated | 5.01 – 8% | SKU-level audits and packaging fixes |
| High Risk | > 8% | Rework policy, recovery, and assortment |
| Category | Typical return rate | Main drivers |
|---|---|---|
| Apparel / fashion | 15 – 30% | Fit, style, bracketing |
| Footwear | 20 – 35% | Size exchange behavior |
| Electronics | 5 – 12% | Compatibility, DOA defects |
| Home / hard goods | 8 – 15% | Damage in transit |
| Beauty (opened) | 3 – 8% | Hygiene restrictions on resale |
Net Return Cost = (COGS at Risk + Reverse Logistics) − RecoveryCost Rate % = Net Return Cost ÷ (Orders × AOV) × 100Returns/mo
1,595
Net cost
$37,922
% of revenue
3.85%
Band
Manageable
1,595 returns · $37,923 net cost · 3.85% of revenue · Manageable · ~$23.78/return.
Returns/mo
1,440
Net cost
$46,296
% of revenue
6.81%
Band
Elevated
1,440 returns · $46,296 net · 6.81% · Elevated — fit/size focus.
Returns/mo
250
Net cost
$8,800
% of revenue
1.47%
Band
Efficient
250 returns · $8,800 net · 1.47% · Efficient band.
Returns/mo
2,000
Net cost
$47,400
% of revenue
8.62%
Band
High Risk
2,000 returns · $47,400 net · 8.62% · High Risk.
Returns/mo
1,834.25
Net cost
$43,610
% of revenue
4.42%
Band
Manageable
1,834.25 returns · $43,610 net · 4.42% rate.
Returns/mo
1,435.5
Net cost
$34,130
% of revenue
3.46%
Band
Manageable
1,435.5 returns · $34,130 net · 3.46% rate.
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