Cost of returns calculator
Work out how much returns cut from your monthly profit.
Work out the minimum ROAS you need to avoid losing money, the most you can pay for a sale and for a click, and the ROAS you would need to keep the profit you want per order.
Every calculation runs in your browser. The figures you type are never sent to a server and are never stored.
Fill in the average order value and the product cost, then press Calculate.
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Below this figure, every unit of currency you put into advertising loses you money.
| Gross order revenue | — |
| Tax included | — |
| Tax-exclusive revenue | — |
| Product cost | — |
| Shipping and logistics | — |
| Packaging | — |
| Fulfillment | — |
| Payment gateway fee | — |
| Returns provision | — |
| Other variable costs | — |
| Contribution margin | — |
Recommended next step
If you have not worked out what returns cost you yet, your real margin is lower than what you see here.
Calculate my cost of returnsResults are estimates based on the information you enter. Fees, taxes and platform terms can change: always check the figure that matters to you against your invoice or the official platform. They do not replace your real invoices, your official accounts or professional tax, financial or legal advice.
The break-even ROAS is the minimum return your advertising needs for the campaign not to lose you money. It is not calculated on revenue, but on what is actually left of each order after tax, product, shipping, packaging and fees.
That remainder is the contribution margin, and it is exactly the ceiling on what you can pay to win a sale.
ROAS, ACoS, CPA and CPC: differences and formulas →
None of the four says anything on its own. “3x ROAS” is neither good nor bad: it depends on your margin. Break-even is always calculated from the contribution margin.
With a 60 order and a 20.55 contribution margin: maximum CPA 20.55, break-even ROAS 2.92x, maximum ACoS 34.24% and, at a 2% conversion rate, maximum CPC 0.41. Four numbers for the same boundary.
A store on 60% margins can live with a 1.7x ROAS. A store on 15% margins needs 6.7x. Comparing two businesses' ROAS without knowing their margins tells you nothing.
It is the return on ad spend at which the campaign neither gains nor loses money: the ad spend exactly consumes the contribution margin of the sales it generates. Above it you start earning; below it you are paying to sell.
Because they measure different things. Platforms divide attributed revenue by spend, using their own attribution rules and without deducting tax, product, shipping or fees. This calculator tells you what ROAS you actually need; the platform tells you what ROAS it believes it is achieving. Compare both, do not confuse them.
Enter the amount exactly as you charge it and tell the calculator whether it includes tax. If it does, it is removed automatically using the rate for your market — or a custom one — because that money is not yours.
Yes. Pick the market you actually sell in: it sets the currency, the tax and the fee defaults. The interface language is independent, so you can read the site in English while calculating in euros, pounds, Canadian or Australian dollars.
It means the product loses money before you spend a penny on advertising: no ROAS can save it. You need to raise the price, cut the product cost, reduce the shipping you absorb, or stop selling it.
Bidding. If you can pay 20.55 for a sale and you convert at 2%, each click cannot average more than 0.41. That is the figure you actually use when setting bids.
The same information inverted. ACoS is the share of revenue advertising takes; ROAS is the revenue multiple per unit spent: ACoS = 100 / ROAS. Amazon speaks ACoS; Meta and Google speak ROAS.
Not in this calculator: only costs that change with each order belong here. Fixed costs are paid out of the sum of the month's contribution margins, which is why it is worth working with a target ROAS above break-even.
Work out how much returns cut from your monthly profit.
Strip out the fees, the tax, the materials, the shipping and the ads.
Work out your profit per unit after fees, fulfillment and advertising.