Return Rate Calculator
Returns are one of the biggest silent profit killers in online retail. This calculator models your unit return rate percentage, retained order revenue, and the aggregate dollar cost of reverse logistics, damage, and customer service.
Return Rate Calculator
Model the true financial cost of returns, reverse logistics, and lost sales margin.
Total order volume over period
Total units returned/refunded
Average customer purchase price
Return label, restocking, inspection fee
Return Rate & Reverse Logistics Formulas
The percentage of fulfilled customer orders returned for refund or exchange.
Percentage of orders that remain successfully kept by customers.
True top-line revenue after refund deductions.
Comprehensive financial impact including refunded top-line revenue plus return label shipping, restocking, and inspection labor.
Worked Example: Footwear Brand Reverse Logistics
A boutique sneaker store sells 800 pairs of shoes at $75.00 each. 48 pairs are returned by customers due to sizing. Return label postage and warehouse restocking cost $14.00 per return.
- Total Pairs Sold:
- 800 pairs
- Pairs Returned:
- 48 pairs
- Average Retail Price:
- $75.00
- Reverse Processing Cost:
- $14.00/pair
- Unit Return Rate:
- 6.0%
- Pairs Retained:
- 752 pairs (94.0%)
- Net Retained Revenue:
- $56400.00
- Reverse Logistics Cost:
- $672.00
- Total Return Financial Loss:
- $4272.00
Frequently Asked Questions
How is the return rate calculated?
What is the average return rate in e-commerce?
What is included in the cost of a return?
Why does the tool prevent units returned from exceeding units sold?
Guides on this topic
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