How this calculator works
Revenue kept = customer payment − refund. Total costs = cost of goods + outbound shipping + return shipping + handling + nonrefundable fees. Economic contribution = revenue kept + estimated recoverable inventory value − total costs. Loss is the absolute value of any negative contribution.
For a $60 sale refunded in full, with $20 product cost, $5 outbound shipping, $7 return shipping, $3 handling, $2 unrecovered fees and $15 conservatively recoverable inventory value, net impact is −$22.
Assumptions and limitations
Recoverable inventory is an estimated asset value, not cash collected. Use zero for unsellable returned stock. This per-order model excludes taxes and other expenses not entered; actual accounting treatment may differ.
Frequently asked questions
What if the returned product cannot be resold?
Set recoverable stock value to zero.
Is recoverable stock value cash income?
No. It is a simplified estimate of economic recovery and should not be interpreted as realized cash flow.