Return Cost Calculator
See exactly how returns eat your net revenue and profit. Use 2026 category benchmarks, then run the numbers for your own store — and know the break-even return rate for any product.
All math runs locally in your browser. Nothing is sent to any server.
2026 Ecommerce Return Rates by Category
Typical return rates in 2026 (NRF / Appriss Retail / industry sources). Use these as reality-check baselines before running your own numbers.
| Category | Return rate | Primary driver |
|---|---|---|
| Apparel & Accessories | 24 – 30% | Sizing / fit / bracketing |
| Footwear | 20 – 25% | Wrong size or comfort |
| Electronics | 11 – 15% | Defective / not as described |
| Jewelry & Accessories | 15 – 20% | Looks different than expected |
| Home & Garden | 8 – 12% | Damaged in transit |
| Toys & Games | 8 – 12% | Quality not as expected |
| Beauty & Personal Care | 4 – 8% | Hygiene rules limit returns |
How to use this calculator
- Orders × AOV = total gross revenue in the period.
- Return rate tells you how many orders come back. Multiply to get the number of returns.
- Each return costs you: full refund + processing + COGS not recovered − resale value + (optionally) non-refundable platform fees.
- Break-even return rate is the threshold above which returns destroy all profit on the product. Below it, you're still earning — just less than you think.
Frequently asked questions
What's a realistic return rate for ecommerce in 2026?
Industry averages in 2026: apparel 24-30%, footwear 20-25%, electronics 11-15%, home goods 8-12%, beauty 4-8%. Apparel stays the worst category because of bracketing (buying multiple sizes to try).
How much does a single return actually cost?
Typical cost is $10-15 per return, counting reverse shipping, processing labor, restocking, and packaging. On top of that, you lose the product cost you can't recover if the item can't be resold at full price.
Do free returns kill profitability?
Free returns lift conversion by a meaningful amount, but also raise the return rate itself. Whether they're worth it depends on whether the extra conversion profit outweighs the higher return cost. Use this calculator with two scenarios: one with your real return rate, one with the rate you'd see without free returns.