Return Rate Impact Calculator
Calculate how product returns eat into monthly profit. See total return cost, effective margin after returns, and extra orders needed to compensate.
By Marginory team · Online sellers with hands-on experience across Etsy, Shopify & POD
Shop Data
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Return Shipping
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Return Impact
Orders per month100
Returns (5%)5.0
Profit without returns$1,500.00
Total return cost-$95.00
Net monthly profit$1,405.00
Effective margin (with returns)46.8%
Recovery
Extra orders needed to offset returns7
Revenue needed to offset return costs$95.00
How this is calculated
Returns per month: Orders × Return rate
Cost per return: Lost profit per order + Return shipping (if seller pays)
Total return cost: Returns × Cost per return
Net monthly profit: Total profit (no returns) − Total return cost
Extra orders to offset: Total return cost / Profit per order
Assumptions:
- Lost profit per return = full profit that order would have generated
- Product resale not assumed (POD and personalized items typically not resellable)
- Platform may or may not refund fees on returns — see platform-specific calculators