Chargeback True-Cost Calculator
What did that chargeback actually cost your business?
- Use our free tool. No sign up needed.
- More than the fee. Lost revenue, goods, fulfillment and the time your team spent on the dispute.
- See what it takes to recover. Add your margin to see how many new sales make up for one chargeback.
Calculate the true cost of a chargeback
Use the figures of one disputed sale. Leave a cost empty if it does not apply.
Reduce the risk, not just the cost. Fraud controls such as risk scoring, velocity rules, IP and location checks, address mismatch checks, email quality checks and manual-review thresholds can lower the risk of chargebacks. No tool can eliminate them.
For estimate only. Based on the figures you entered; it does not include possible fines, higher processing costs or account reviews that repeated chargebacks can bring.
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Why a chargeback fee calculator should count more than the fee
The chargeback fee is the part you see on your statement. But when a customer disputes a sale and wins, the fee is often the smallest part of the loss. A true chargeback fee calculator adds up everything the dispute takes from your business:
- Lost revenue: the disputed amount is taken back from you.
- The product or service: usually gone too, unless you get it back or stop the service.
- Fulfillment: shipping, packaging and delivery you already paid for.
- The chargeback fee charged by your processor.
- Labor: the time someone spends gathering evidence and responding to the dispute.
How many sales does it take to recover?
Add your profit margin and this chargeback calculator shows how many new sales of the same amount you would need to earn back the loss. With a 25% margin, a $200 sale earns about $50 of profit: a $380 chargeback takes about 8 new sales to recover.
Reducing chargebacks
Fraud controls can lower the risk of chargebacks: risk scoring, velocity rules, IP and location checks, address mismatch checks, email quality checks and manual-review thresholds. Clear descriptors on statements and responsive customer service help too. These guardrails reduce risk; no tool can eliminate chargebacks entirely.
What is a chargeback?
A chargeback happens when a cardholder disputes a payment with their bank and the bank reverses it. The merchant loses the sale amount, usually pays a fee, and can respond with evidence.
How much is a typical chargeback fee?
It depends on your processor and your pricing; check your processing agreement or statements. Enter the fee you were charged, and leave it empty if you do not know it.
Why count the product cost and the lost revenue?
When a chargeback is lost, the money for the sale is taken back and the goods are usually not returned. Both are gone. If you recovered the product or stopped the service, choose “Yes, recovered” and its cost is not counted.
Is this exact?
It is an estimate based on the figures you entered. It does not include possible fines, higher processing costs or account reviews that a high chargeback ratio can bring.