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Calculators / Business / Contribution after refunds
Contribution after refunds calculator
Estimate contribution when some shipped orders receive a full refund.
On this page
Revenue retained45,000
Contribution after returns24,500
Returned orders (expected)100
Calculator controls
How to calculate
Estimate contribution when some shipped orders receive a full refund.
Revenue retained =
orders*price*(1-refund/100)Contribution after returns =
orders*price*(1-refund/100)-orders*cost-orders*refund/100*handlingReturned orders (expected) =
orders*refund/100Worked example
- Orders shipped: 1000
- Selling price per order: 50
- Fully refunded orders (%): 10
- Variable cost per shipped order: 20
- Cost per returned order: 5
- Revenue retained: 45,000
- Contribution after returns: 24,500
- Returned orders (expected): 100
Assumptions and limits
Every shipment incurs the entered variable cost. No resale recovery, partial refunds, taxes, overhead or revenue-based fees are assumed. Fractional returns are expectations.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Estimate contribution when some shipped orders receive a full refund. At 1000 orders priced at 50 with 10% refunds, retained revenue is 45000. Subtract 20000 shipping/order costs and 500 return handling to leave 24500.
When this tool is useful
At 1000 orders priced at 50 with 10% refunds, retained revenue is 45000. Subtract 20000 shipping/order costs and 500 return handling to leave 24500.
Understanding your inputs
| Input | Example |
|---|---|
Orders shipped orders | 1000 |
Selling price per order price | 50 |
Fully refunded orders (%) refund | 10 |
Variable cost per shipped order cost | 20 |
Cost per returned order handling | 5 |
Frequently asked questions
What does this estimate leave out?
Every shipment incurs the entered variable cost. No resale recovery, partial refunds, taxes, overhead or revenue-based fees are assumed. Fractional returns are expectations.
How do I check the example?
Use the stated units and the formula below. Keep full precision until the final answer; change one input at a time to see its effect.