Return Rate Profit Calculator
Free calculator for the true cost of returns: return rate, return postage, resellable share, fees the platform keeps on a refund and ads already spent → expected profit per order after returns, break-even return rate, and the price that absorbs your return rate.
Results
Expected profit at different return rates
| Return rate | Expected profit | Expected margin | Price that restores – margin |
|---|
How it is calculated
Normal profit = price − percentage fees − fixed fees − ads − product cost − outbound shipping. Loss per return = outbound shipping + ads + fees the platform keeps + return postage + other per-return cost + product cost × (1 − resold share). The refund itself is not a loss — the revenue simply never happened — but everything spent to make the sale is.
Expected profit per order = (1 − return rate) × normal profit − return rate × loss per return. Break-even return rate = normal profit ÷ (normal profit + loss per return). The last column solves for the price at which expected profit equals the normal margin you had before returns. Fee refund rules differ: Amazon keeps $5 or 20% of the referral fee (≈ 80% refunded on a $30 item), eBay credits the final value fee but not the per-order fee, Etsy credits the transaction fee.
Key points
- A return does not just cancel a profit — it costs the outbound shipping, the ad click, any fees the platform keeps, the return postage and, if the unit cannot be resold, the product itself.
- Expected profit per order = (1 − return rate) × normal profit − return rate × loss per return. At an 8% return rate and $12.60 lost per return, a $12 profit becomes $10.03.
- Amazon keeps a refund administration fee ($5 or 20% of the referral fee, whichever is less); eBay credits the final value fee on a full refund; Etsy credits the transaction fee.
- Apparel and shoes commonly see 15–30% returns online, electronics 5–10%, consumables under 5% — use your own category's rate.
- Break-even return rate = normal profit ÷ (normal profit + loss per return): the rate at which the product stops making money.
Worked example
$30 price, 15% fees, $9 cost, $4.50 outbound, $4.50 return postage, 70% of returns resold, platform refunds 80% of percentage fees.
| Return rate | Normal profit | Loss per return | Expected profit | Expected margin |
|---|---|---|---|---|
| 2% | $12.00 | $12.60 | $11.51 | 38.4% |
| 8% | $12.00 | $12.60 | $10.03 | 33.4% |
| 15% | $12.00 | $12.60 | $8.31 | 27.7% |
| 25% | $12.00 | $12.60 | $5.85 | 19.5% |
The table uses default assumptions. Enter your own numbers in the calculator above.
Rates as of2026-09-20Last automated check2026-10-01Marketplace fee pages and related news are checked automatically every day; changes are reflected here.
Wrong result or a rate that changed? Report a bug in this tool · Report a rate change
Results are estimates for reference only. Actual fees depend on each marketplace's current policies, promotions, your account status and product attributes. Verify in your seller account before making decisions.
Frequently asked questions
Which costs does a return actually cause?
The outbound shipping you already paid, the advertising that produced the order, the part of the fees the platform does not refund, the return label if you pay it, and the product cost when the unit cannot be resold as new. Restocking labour and FBA removal fees can be added as a fixed amount.
How does Amazon handle fees on a return?
The referral fee is refunded minus a refund administration fee of $5 or 20% of the referral fee, whichever is less. The FBA fulfillment fee is not refunded. Returned FBA units are graded; unsellable ones are disposed of or returned to you for a fee.
What is the resellable share?
The percentage of returned units that can be sold again as new. For sealed consumer goods it may be 80–90%; for apparel with tags 70–90%; for opened electronics or cosmetics near 0%. Unsellable units cost you the full product cost.
Does the calculator include free returns programs?
If you pay return postage (Amazon FBA orders, many eBay and Shopify policies), enter it. If the buyer pays, set it to zero. Amazon FBA charges the returns processing fee only in high-return categories above a threshold; add it as a fixed amount if it applies to you.
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