For Online Sellers

Return Rate Calculator: How Returns Eat Your Profit

Free tool · Updated October 2, 2026 · By CouponTalk · Reviewed by CouponTalk Expert Reviews on October 2, 2026

Your result

Enter your measurements to see your result.

Quick answer

Each return usually costs you forward and reverse shipping, packaging and part of the product if it comes back damaged, while the sale is refunded. A ₹100 profit per order falls to about ₹49 at a 20% return rate when each return costs ₹130 in shipping and packaging and 10% of returns are unsellable.

How to use this calculator

Enter profit on an order that is kept.
Enter your return rate and what each return costs.
Enter the share of returned items you cannot sell again.

Formula

Average profit per order = Profit × (1 − Return rate) − Return rate × (Cost per return + Product cost × Unsellable %)

Fees and rates checked on 2 October 2026. Marketplaces revise rate cards often, so confirm current figures in your seller dashboard before you set prices.

Frequently asked questions

What is a normal return rate in Indian e-commerce?

It varies widely: fashion often sees 20–35% returns, electronics accessories 5–10% and home goods lower. Check your own reports.

How can I reduce returns?

Add accurate size charts and real photos, state fabric and dimensions clearly, and check quality before dispatch. Size calculators on your listing images help in fashion.