Retail Chargeback Cost Calculator

Find the true net revenue and margin on a retail account after chargebacks, allowances, and compliance costs are applied. Most accounts look less profitable on paper than they appear on the PO. Some should be exited entirely.

Free to useCalculator

Account & PO Details

Retailer / account name

PO Value

Your gross margin

Annual POs with This Account

Avg Internal Admin Hours / PO

Your Internal Hourly Rate

EDI monthly cost (allocated)

Deductions & Allowances

Early pay discount (if taken)

Markdown Allowance

Co-op / Advertising

New Vendor Setup Fee

One-time per retailer, amortized across the first year of POs

Chargeback Incidents

Routing violation: incidents per PO

Wrong carrier or service level

Routing violation: fee each

Labeling / ticketing error: incidents per PO

Barcode, price ticket, carton label

Labeling / ticketing error: fee each

EDI error: incidents per PO

ASN late, wrong format, data mismatch

EDI error: fee each

Packing violation: incidents per PO

Wrong case qty, mixed SKUs

Packing violation: fee each

Late / short shipment: incidents per PO

Outside ship window or short quantity

Late / short shipment: fee each

Other / misc: incidents per PO

Any additional violation type

Other / misc: fee each

Dispute Win Rate

Dispute Admin Hours / Chargeback

Your resultUpdates as you type

True net revenue per PO$11,100

After allowances and net chargebacks

What it means

True net margin is 40.8%. Chargebacks or allowances are reducing profit significantly. Review which violations are preventable before next PO.

True net margin: 40.8%
Chargeback rate (net, % of PO): 1.5%
Total deductions per POAllowances, net chargebacks, EDI and admin: $1,350
Annual net profit: $19,560
Verdict: Account Needs Attention
Early pay discount: $240
Markdown allowance: $360
Co-op contribution: $120
Gross chargebacks: $450
Chargebacks recovered: $270
Gross margin before deductions: $6,240
All allowances: $720
Net chargebacks: $180
EDI cost per PO: $240
Admin labour cost per PO: $210
Setup fee per PO (first year): $0
True net profit per PO: $4,890
Annual gross revenue: $48,000
Annual total deductions: $5,400
Annual chargeback cost (net): $720

Margin waterfall per PO

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What a retail account really nets

How to use it

Enter pre-agreed deductions as % of PO and estimated chargeback incidents with their per-incident cost. Adjust incidents as your compliance improves.

45% net margin or more: account is healthy. Focus on growing it.
30% to 45%: needs attention. Review which violations are preventable before the next PO.
0% to 30%: margin danger zone. Reduce violations or renegotiate terms.
Below 0%: the account is losing money. Dispute chargebacks aggressively, eliminate preventable violations, or exit the account.

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