Returns Handling Cost Per Unit Calculator — Reverse Logistics Cost

Calculate your true cost per returned unit. Receiving, inspection, restocking, and write-offs — find where your returns cost is hiding.

Quick answer: Returns handling cost: $5–$15/unit for simple restocking, $15–$40 for inspection + refurbishment, $20–$60 for e-commerce with multiple disposition paths.

🔄 Returns Handling Cost Per Unit Calculator

Monthly Return Volume (units)

Return Rate (% of shipped)

Optional — for context

Receiving Cost Per Unit ($)

Inspection Cost Per Unit ($)

Restockable % of Returns

Restocking Cost Per Unit ($)

Written Off / Liquidated (%)

Avg Unit Value ($)

Total Cost Per Return

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Processing Cost/Unit

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Annual Returns Cost

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How to Use This Calculator

Enter monthly return volume — units received back from customers each month.
Enter per-unit processing costs — receiving, inspection, and restocking based on actual time and labour rates.
Set disposition percentages — what can return to A-stock, what must be liquidated or scrapped?

Worked Example

500 returns/month, $1.50 receive, $3 inspect, 60% restockable at $2.50, 25% write-off, $45 unit value.

Processing/unit: $1.50 + $3.00 + $1.50 = $6.00
Write-off loss: $45 × 25% × 70% = $7.88
Total/unit: $13.88
Annual: $83,250

Reducing write-off rate from 25% to 15% through better condition grading and refurbishment saves $11,000/year.

Frequently Asked Questions

Fashion: 20–30% is common. Electronics: 5–15%. General: 5–10%. Above-category return rates signal product description issues, quality problems, or sizing guides needing work.

Customer-graded returns portals routing items to correct disposition automatically, consolidated return locations, AI photo assessment at return initiation, and better condition grading training all reduce cost per unit.