Refund Impact Calculator
See how your refund rate reduces net revenue and effective profit margin across your total sales.
Your results
Calculation breakdown
- Refund value
- Gross revenue × Refund rate
- Net revenue
- Gross revenue − Refund value
Worked example
A business with $80,000 gross revenue and a 6% refund rate loses $4,800 in revenue, plus $1,440 of profit at a 30% margin.
Assumptions
- Chargebacks often carry additional processing fees beyond the refunded amount.
- This estimate doesn't include restocking or write-off costs on returned items.
- Reducing refund rate compounds meaningfully at scale.
How this calculator works
Enter your gross revenue and refund rate to see the dollar value of refunds and your net revenue after returns. This highlights how even a modest refund rate can meaningfully erode profit at scale.
Frequently asked questions
Should I include chargebacks in my refund rate?
You can combine them or track separately — chargebacks often carry additional processing fees beyond the refunded amount, worth accounting for separately.
How can I reduce my refund rate?
Common approaches include clearer product descriptions, better sizing guides and quality control before dispatch.
Does this include the cost of restocking returned items?
No, this calculator focuses on the revenue impact; add restocking or write-off costs separately in your overall profit calculation.
Results are estimates only and are not financial, tax, legal or credit advice.