Chargeback Cost Calculator
The real cost of disputes, not just the refund.
Enter your values
ⓘ Live results
Results
- Monthly chargeback cost
- $2,122.56
- Cost per chargeback
- $160.80
- Chargebacks per month
- 13.2
- Annual cost
- $25,470.72
- Multiple of order value
- 2.23×
- Extra sales needed to recover
- $4,716.80
- Risk level
- Below the 1% threshold
Quick answer
A chargeback costs 2–3× the transaction value once you add the lost goods, the dispute fee and the staff time spent responding.
Cost = (order value + COGS + fee + labour) × count
How to use the Chargeback Cost Calculator
- 1Enter your monthly order count and chargeback rate.
- 2Enter average order value and cost of goods.
- 3Add the dispute fee your processor charges and the staff time each dispute takes.
Worked example
Using the values the calculator loads with:
Inputs
- Orders per month2200
- Chargeback rate0.6 %
- Average order value72 $
- Cost of goods40 % of order
- Chargeback fee25 $
- Staff time per dispute35 $
- Gross margin45 %
Results
- Monthly chargeback cost$2,122.56
- Cost per chargeback$160.80
- Chargebacks per month13.2
- Annual cost$25,470.72
- Multiple of order value2.23×
- Extra sales needed to recover$4,716.80
- Risk levelBelow the 1% threshold
Frequently asked questions
What chargeback rate is dangerous?
Above 0.9–1% of transactions puts you into card network monitoring programmes, with fines and the risk of losing processing entirely.
How do I reduce chargebacks?
Clear billing descriptors, fast refunds, delivery tracking and 3-D Secure on risky orders remove most friendly-fraud and confusion disputes.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.