Refund Impact Analysis
Gross Profit (No Refunds)
£0.00
Refund Impact (£)
£0.00
Net Profit After Refunds
£0.00
Profit Per Unit
£0.00
Break-even Refund Rate
0%
Calculation Formula
Gross Profit = (Selling Price – Product Cost – FBA Fees) × Units Sold
Refund Impact = (Selling Price + FBA Fees) × Refund Rate × Units Sold
Net Profit = Gross Profit – Refund Impact
Break-even Refund Rate = (Gross Profit) / (Selling Price + FBA Fees) × 100
Refund Rate Sensitivity Calculator
Analyze how changes in your refund rate impact your overall profit and business performance.
How to Use the Refund Rate Sensitivity Calculator
- Enter your product’s selling price.
- Add your cost of goods sold (COGS).
- Input your current refund rate.
- Adjust the refund rate to see how profit changes.
- Use the results to plan strategies for reducing refunds.
Why Use a Refund Rate Sensitivity Calculator?
Refunds can significantly cut into your profit margins. This tool helps sellers:
- Understand the financial impact of refunds
- Identify the break-even refund rate
- Make pricing or policy adjustments to offset losses
- Improve product quality and customer satisfaction
Formula Used
Adjusted Profit = (Selling Price – COGS) × (1 – Refund Rate)
This formula accounts for the percentage of sales lost due to refunds and shows how net profit changes as refund rates vary.
Tips for Accurate Results
- Use your historical refund rate for realistic calculations.
- Include associated costs like return shipping and restocking fees.
- Review refund data regularly to detect problem trends.
