Shipping Cost Recovery Calculator
Check whether the shipping fee you charge customers covers your actual shipping cost, or how much you're subsidising.
Your results
Calculation breakdown
- Gap per order
- Shipping charged − Actual shipping cost
- Recovery rate
- (Shipping charged ÷ Actual shipping cost) × 100
Worked example
Charging $8 for shipping that actually costs $11 leaves a $3 per-order subsidy, a $900 monthly shortfall across 300 orders.
Assumptions
- Subsidising shipping deliberately can still be a valid strategy if factored into overall margin.
- Include packaging materials here for a fuller shipping cost picture if desired.
- Actual shipping cost should reflect your real courier or postage rate.
How this calculator works
Compare what you charge customers for shipping against your actual courier or postage cost to see whether you're recovering it fully, partly, or subsidising it from margin. Use this across order volumes to see the total shipping subsidy over a period.
Frequently asked questions
Is it bad to subsidise shipping?
Not necessarily — many sellers deliberately absorb some shipping cost to boost conversion, as long as it's factored into overall pricing and margin.
Should I include packaging materials in shipping cost?
You can include them here for a fuller picture, or track them separately in the Profit Per Order calculator.
How do I reduce a shipping shortfall?
Options include adjusting the shipping fee charged, negotiating better courier rates, or building shipping cost into the product price.
Results are estimates only and are not financial, tax, legal or credit advice.