Return Rate Calculator
Returns cost you twice: the sale is lost and you pay delivery both ways. This calculator turns your return rate into returned orders, lost revenue and the real profit lost to returns.
What is ecommerce return rate?
Return rate = returned orders ÷ total orders × 100. In cash-on-delivery markets like Bangladesh, refused parcels count as returns and can be the biggest hidden cost of the business.
How to use the return rate calculator (formula)
What each field means
- Total orders — Orders shipped in the period.
- Average order value — Average order value.
- Product cost — Cost of the product in one order.
- Delivery cost — Forward delivery cost per order.
- Return delivery cost — Cost to bring a returned order back.
- Return rate — Percentage of orders that come back.
Worked example
Using these numbers: total orders 1000, average order value $45.00, product cost $15.00, delivery cost $5.00, return delivery cost $5.00, return rate 12%.
The estimated profit lost to returns is $4,800.
- Returned orders: 120
- Successful orders: 880
- Revenue lost: $5,400
- Return shipping cost: $1,200
What is a normal return rate?
Online fashion often sees 15–30% returns globally; most other categories sit around 5–15%. In Bangladesh COD stores, 10–25% is common — anything above 20% needs urgent action.
Tips to improve your result
- Track return rate by product and by ad campaign — a few items usually cause most returns.
- Clear size charts and real product photos cut returns.
- Order confirmation calls reduce refused COD parcels.
- Count return shipping in your ad budget decisions.
Frequently asked questions
How do I calculate return rate?
Divide returned orders by total orders and multiply by 100.
How much does a returned order cost?
At least delivery plus return delivery, plus the lost profit of the sale, packaging and any damaged stock.
What is the difference between return rate and refund rate?
Return rate counts products sent back; refund rate counts money paid back, which can happen without a physical return.
How can I reduce returns?
Better product information, sizing help, quality checks, confirmation before shipping, and targeting the right audience in ads.
You might also need
COD Profit CalculatorReal profit after COD returns, delivery and ad cost.
Delivery & Return Cost CalculatorCourier cost per successful order, returns included.
E-commerce Profit CalculatorNet profit and margin per order after product, shipping, fees and ads.
Want help improving these numbers?
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