Dropshipping
Dropshipping Refund Impact Calculator
A refund does not just remove a sale: on a refunded order the product and shipping are usually already spent and the original payment fee is not returned. See the effect per 100 orders.
The model assumes refunded orders are a total loss of product and shipping, with the payment fee kept by the processor and the buyer refunded in full. If a supplier refunds you for returned stock, enter that recovery by lowering the product cost effect in your own figures — this page does not assume any recovery.
Formula
Profit on a kept order = selling price − product cost − shipping cost − payment fee, where payment fee = (payment fee rate × selling price) + fixed fee. Loss on a refunded order = −(product cost + shipping cost + payment fee + extra fee per refunded order), because the buyer is refunded in full while those costs are already spent. Profit per 100 orders = (kept orders × profit on a kept order) + (refunded orders × loss on a refunded order). Average profit per order = profit per 100 orders ÷ 100.
How it works
Enter the selling price, product and shipping cost, payment fee, refund rate, and any extra fee per refunded order (for example a dispute fee if a refund becomes a chargeback — leave it at zero for ordinary refunds). The calculator models 100 orders at that refund rate and shows total and average profit against the no-refund case. It assumes no recovery from the supplier on refunded stock; if your supplier refunds you, your real loss is smaller.
Worked example
Selling price $39.99, product $12.00, shipping $5.00, payment fee 2.9% plus $0.30, refund rate 5%, extra fee $0. Payment fee = 2.9% of $39.99 = $1.16, plus $0.30 = $1.46. Profit on a kept order = $39.99 − $12.00 − $5.00 − $1.46 = $21.53. Loss on a refunded order = −($12.00 + $5.00 + $1.46) = −$18.46. Per 100 orders: 95 kept × $21.53 = $2,045.35, plus 5 refunded × −$18.46 = −$92.30, total $1,953.08 on unrounded figures, average $19.53 per order — $2.00 per order below the no-refund profit of $21.53.
FAQs
Is the payment fee really lost on a refund?
With Stripe, yes on standard pricing: Stripe's own refund documentation states that processing fees from the original transaction are not returned. Other processors have similar rules, so check your own processor's refund policy.
What is the extra fee field for?
For a charge on top of the refund itself, such as a dispute fee when a buyer escalates to a chargeback. Ordinary refunds usually carry no extra fee, so the field starts at zero — enter your processor's actual dispute fee only if that is what you are modelling.
Does this assume the customer returns the product?
No. It assumes the worst common case for dropshipping: product and shipping already spent and not recovered. If your supplier takes returns and refunds you, your real loss per refunded order is smaller.
Why model 100 orders instead of my monthly total?
Per-100 figures make any refund rate easy to compare, and scaling is simple: multiply the per-100 total by your monthly orders divided by 100.
How do I lower refund impact?
Accurate product descriptions and photos, honest delivery times, and a supplier with low defect rates all cut the refund rate itself, which matters more than shaving a few cents off any single cost.
Stand: October 2026. Pure arithmetic — no platform rate is used; enter your own figures.
Sources: Stripe Docs — Refund and cancel payments (processing fees from the original transaction are not returned on standard pricing). All other figures on this page are inputs from your own supplier invoices and payment statements, not published platform rates.
Disclaimer: Results are estimates and general information only, not financial advice. Dropshipping has no single fixed platform fee, so every cost on this page is one you enter from your own supplier invoices, shipping bills and payment statements — check those documents before you set a price.
Related calculators
Dropshipping Margin Calculator
Payment Processing Fee Calculator
Instant result, no sign-up.
All tools are free.
Each page shows the formula it uses, so you can check the result yourself.
Built for phone browsers.
Refunds cost more than the sale you lose
Model the refund rate before it quietly eats your margin.