A customer return changes the original order in several ways: some receipts may remain, money is refunded, fees may be credited and inventory may come back in a different condition. The Returns Calculator follows these pieces to estimate the final order outcome.
Start with the original receipts and actual refund
Enter an original item payment of PKR 1,500 and shipping collected of PKR 100. Total receipts were PKR 1,600. If the customer receives a PKR 1,500 refund, PKR 100 remains.
Now enter product cost PKR 800 with 100% inventory recovery. Add outward courier PKR 200, return courier PKR 150, packaging PKR 50 and advertising PKR 100. With no retained fees, those unrecovered service and fulfilment expenses total PKR 500.
A refund can leave an order loss even when the product survives
The retained PKR 100 offsets part of the PKR 500 expenses, leaving a final outcome of negative PKR 400. Recovering the product prevents its cost from becoming an additional loss. It does not erase the two courier journeys or the packaging already used.
The PKR 800 recovered inventory value is a cost based adjustment, not a payment arriving in the bank. A later sale of that stock is a separate transaction and should not be included as another receipt in this returned order.
Use inspection results for partial recovery
Consider a full PKR 1,600 refund, only 50% recovery of the product cost, PKR 100 original fees and PKR 20 fee credit. Retained receipts are zero. Unrecoverable inventory is PKR 400, other expenses are PKR 500 and net retained fees are PKR 80.
The resulting loss is PKR 980. This example distinguishes a partial stock loss from a fee credit; neither should be silently hidden inside the customer refund field.
Match the records before drawing a policy conclusion
Keep the refund receipt, courier invoices, fee adjustment and stock inspection together. Use recovery percentages based on the value you can reasonably retain at cost, rather than the original retail price of the returned item.
This calculation does not determine customer rights, a platform’s return policy or tax treatment. It models the amounts you enter. For parcels that never reached the customer, COD RTO Expected Profit Calculator provides a dispatch batch view. After a processed return, Seller Settlement Reconciliation Calculator can help explain the difference between expected and actual cash transfers.