How to use the return rate profit calculator
A return does more than cancel a sale. On top of the revenue that comes back off the books, you pay return shipping and inspection and repackaging in real cash, and whatever cannot be sold again becomes inventory loss. Looking only at a single net revenue line understates what returns actually cost.
This calculator splits every step out. Gross order revenue less the returned orders gives revenue after returns; then COGS on the orders you kept, return handling cost and inventory loss come off in turn to give monthly profit after returns. The last table row recomputes profit as if no order had come back, and the difference is the profit returns took.
Resellable share is the portion of returns that goes back on the shelf as new. Salvage rate is how much of the product cost you recover on the rest through liquidation or write-off. Setting them to 100% and 0% gives the no-inventory-loss case and the total write-off case. Fixed costs such as rent and salaries are not modelled here.
Frequently asked questions
Enter only what you actually pay in the return shipping field. If the customer covers all of it, enter 0.
An exchange usually keeps the revenue and only adds handling cost, so tracking exchanges separately from returns keeps both numbers easier to read.