Calculators

Restocking Fee Calculator

Last modified: May 27, 2026

Updated May 27, 2026 Expert reviewed

A restocking fee is a percentage of an item’s purchase price that a seller keeps when a customer returns a product, instead of refunding the full amount. This free restocking fee calculator does the math for you: enter the item price and your restocking percentage, and you get the exact fee to charge and the refund amount the customer will receive.

Item Purchase Price ($)

Restocking Percentage (%)

Restocking Fee ($)

What Is a Restocking Fee? (Definition and Example)

A restocking fee is the portion of an item’s price that a store withholds from a refund to cover the cost of processing the return. The restocking fee meaning is straightforward: it is the dollar amount a customer loses when they send something back, expressed as a percentage of what they paid.

The formula is simple: Item Purchase Price × Restocking Percentage = Restocking Fee. For example, a $200 item with a 15% restocking fee costs the customer $30, and they receive a $170 refund. Restocking fees exist because returned items cost money to handle. Someone has to inspect the product, repackage it, update inventory records, and put it back on the shelf. Without a fee, those costs come straight out of your profit.

How to Use the Restock Calculator: Step by Step

Enter the Item Purchase Price: Type in the price the customer paid, pre-tax and pre-shipping. For example, if the customer paid $89.99 for a pair of headphones, enter $89.99.
Set Your Restocking Percentage: Pick a rate that matches your product category. If you are unsure, start with 15% and adjust after reviewing your actual return processing costs over a few months.
Read the Result: The calculator instantly shows the restocking fee amount. For $89.99 at 15%, you would charge $13.50 and refund $76.49.

You can run the calculation multiple times with different percentages to compare. Many store owners test 10%, 15%, and 20% side by side before settling on a final rate for their return policy.

How Much Is a Restocking Fee? Standard Rates by Industry

Restocking fee percentages vary widely by product type. The standard restocking fee across most categories sits between 10% and 25%. Here are the typical restocking fee ranges most stores use:

Electronics (phones, laptops, cameras): 15%-25%. Returned electronics often need testing, data wiping, and repackaging in original boxes. Opened items lose resale value fast, so a higher restocking fee is standard.
Clothing and apparel: 10%-20%. Returns are frequent in fashion (online return rates hit 20-30%), but reprocessing costs are lower. Many sellers keep fees modest to stay competitive.
Furniture and large items: 15%-25%. Shipping costs are high, and returned furniture often arrives with minor damage. Some sellers charge a flat restocking fee plus return shipping rather than a percentage.
General retail (home goods, accessories, toys): 10%-15%. Lower-cost items with simple repackaging needs warrant a smaller restocking fee percentage.
Opened software, video games, and digital media: 25% or higher, and many retailers refuse returns entirely once the packaging is opened due to piracy concerns.
Custom or personalized products: 25%-50% or non-refundable. Items made to order often cannot be resold, justifying a higher fee.

The average restocking fee across general retail is roughly 15%, which is also what major retailers like Best Buy and Sephora have used historically. These are industry norms, not rules. You can set any restocking fee percentage that makes sense for your business, as long as you disclose it before the customer buys.

Restocking Fee Calculator Examples by Common Percentage

The five percentages stores charge most often are 10%, 15%, 20%, 25%, and 50%. Here’s what each looks like on a few common order values, so you can sanity-check the calculator against a few real cases before posting your return policy.

10% restocking fee (the most common low rate)

$50 item: customer refund = $45 (fee $5)
$150 item: customer refund = $135 (fee $15)
$500 item: customer refund = $450 (fee $50)

10% is the rate most general merchandise and apparel stores use. It covers basic restocking labor without feeling punitive.

15% restocking fee

$50 item: customer refund = $42.50 (fee $7.50)
$150 item: customer refund = $127.50 (fee $22.50)
$500 item: customer refund = $425 (fee $75)

15% is standard for opened electronics, small appliances, and items that need testing or repackaging before resale.

20% restocking fee (sometimes written as “20 percent”)

$50 item: customer refund = $40 (fee $10)
$150 item: customer refund = $120 (fee $30)
$500 item: customer refund = $400 (fee $100)

20% is common for furniture, bulky home goods, and specialty items where freight or packaging costs are higher.

25% restocking fee

$50 item: customer refund = $37.50 (fee $12.50)
$150 item: customer refund = $112.50 (fee $37.50)
$500 item: customer refund = $375 (fee $125)

25% is the high end of “reasonable.” Above this rate, customer complaints and chargeback risk rise sharply. Use only for genuinely costly-to-restock items (custom orders, large freight items, opened software).

50% restocking fee (used sparingly)

$50 item: customer refund = $25 (fee $25)
$150 item: customer refund = $75 (fee $75)
$500 item: customer refund = $250 (fee $250)

50% fees are typically reserved for special-order items, items returned outside the normal return window, or items that can’t be resold as new. Many jurisdictions require explicit, signed agreement at point of sale before a 50% fee is enforceable.

How to Set Up a Restocking Fee on Shopify

Shopify does not have a single “restocking fee” button, but the platform gives you two ways to apply one when you process a refund. Both methods use the standard refund workflow inside the order:

Partial refund method: Open the order, click Refund, and enter the refund amount manually. If the item was $100 and your restocking fee is 15%, refund $85 instead of $100. Add a refund reason note like “Restocking fee applied per return policy” so the customer sees it on their receipt.
Refund adjustment method: In the same refund screen, use the Refund adjustment field to subtract the restocking fee as a separate line, keeping the product refund clean while showing the deducted amount transparently. This is the better approach for accounting because the restocking fee appears as a distinct entry in your reports.

A few Shopify-specific details to know:

Restock the item: Tick the “Restock item” checkbox in the refund screen so the unit returns to your inventory count automatically.
Return rules app: Shopify’s built-in Returns feature (Settings → Policies and Returns) lets you set restocking fees as a fixed amount or percentage at the policy level, and they apply automatically when a customer submits a self-serve return.
Restocking fee apps: If you need conditional rules (different fees by product, category, or customer tag), apps like ReturnGO, AfterShip Returns, and Loop Returns handle restocking fees natively.
Notify the customer: Shopify’s default refund email shows the refund amount but does not explain the deduction. Edit your return confirmation template to spell out the restocking fee so customers are not surprised.

Legal Requirements for Restocking Fees

Restocking fees are legal in most places, but specific rules vary by jurisdiction.

United States
There is no single federal law governing restocking fees. Each state sets its own rules:

California: Retailers must clearly display their restocking fee policy at the point of sale. If they do not, the customer can demand a full refund. The policy must state the exact percentage or amount.
New York: Stores must post their refund policy conspicuously. If no policy is posted, the store must give a full cash refund within 30 days.
Other states: Most states allow restocking fees with no cap, as long as the fee is disclosed before purchase. A handful of states restrict fees on defective goods specifically.

The FTC does not set a maximum restocking fee percentage, but it considers undisclosed fees a deceptive practice under Section 5 of the FTC Act.

European Union
EU consumer protection law gives online buyers a 14-day cooling-off period on most purchases. During this window:

The seller cannot charge a restocking fee on most returned goods.
The buyer must return the item in its original condition; the seller can deduct value lost from handling beyond what was necessary to check the product.
Certain categories are exempt: perishable goods, sealed hygiene products opened after delivery, and custom-made items.

If you sell to EU customers, your restocking fee policy needs to account for these rules or you risk chargebacks and regulatory complaints.

Best Practices Regardless of Location

State the restocking fee percentage on every product page, at checkout, and on your dedicated returns policy page.
Include the fee details in order confirmation emails.
Waive the fee when the return is your fault (defective item, wrong item shipped, damaged in transit).
Keep records of your policy version history in case of disputes.

Who Needs a Restocking Fee Calculator?

Anyone selling physical products where returns are possible. Here is who benefits most:

Shopify and other eCommerce store owners: Online stores in fashion, electronics, and home goods often see return rates of 15-30%. A restocking fee calculator helps you set fees that actually cover your costs instead of guessing.
Brick-and-mortar retailers: In-store returns still require staff time, shelf space, and sometimes professional cleaning or testing. The calculator tells you exactly what to charge based on your chosen restocking fee percentage.
Warehouse and fulfillment managers: If you handle returns for multiple brands or stores, this tool helps you calculate fees quickly and consistently across product lines.
Marketplace sellers (Amazon, eBay, Etsy): Marketplace policies sometimes allow restocking fees on certain returns. Knowing your exact fee amount helps you decide whether to apply one or absorb the cost.

What Makes a Good vs. Bad Restocking Fee?

A good restocking fee covers your return processing costs without making customers feel punished. A bad fee either leaves you losing money on every return or charges so much that customers leave negative reviews and never buy again.

Here are signs your restocking fee is set correctly:

The fee covers labor, repackaging materials, and a portion of your shipping costs.
Customers rarely complain about the fee amount specifically.
Your return rate does not spike after you introduce the fee.

Here are signs your fee is too high or too low:

Too high (30%+): Customer complaints increase, chargeback disputes rise, and your reviews mention “unfair return policy.”
Too low (under 5%): The fee does not cover your processing costs, and it does not discourage impulse returns.
0% with no policy: You absorb every return cost. This works for some high-margin businesses, but most sellers cannot sustain it.

Restocking Fee Examples: Good and Bad

Fair restocking fees:

$7.50 fee on a $50 item (15%): Covers inspection and repackaging for a mid-priced product. The customer keeps most of their refund, and you are not losing money on the return.
$37.50 fee on a $250 electronics item (15%): Electronics need testing, data clearing, and original-box repackaging. A 15% fee is in line with what major retailers charge.
$2.00 fee on a $20 accessory (10%): Low-cost items need a small fee. Anything higher feels disproportionate to the customer, and your processing costs are minimal.

Problematic restocking fees:

$50 fee on a $100 item (50%): Charging half the item’s price will generate complaints and chargebacks. Lower this to 15-20% and you still cover costs without alienating the customer.
$0 fee on a $100 item (0%): You are absorbing all return costs. Even a 10% fee ($10) would cover basic handling and discourage no-reason returns.
$0.25 fee on a $50 item (0.5%): Too small to cover any real cost and sends the signal that returns are free. Raise it to at least 10% ($5.00).

How to Add a Restocking Fee to Your Return Policy

A restocking fee calculator is only useful if your return policy actually includes the fee. Here is how to set it up properly.

1. Write clear policy language
State the exact restocking fee percentage, which products it applies to, and any exceptions. Example:

“Returned items in original, unopened packaging are eligible for a full refund. Opened items are subject to a 15% restocking fee. Defective products and items damaged during shipping are exempt from restocking fees.”

2. Display the policy where customers will see it

Product pages: Add a short note near the “Add to Cart” button or in a collapsible returns section.
Checkout page: Include a returns policy checkbox or link before the customer pays.
Dedicated returns page: Spell out the full policy with examples. Consider adding your restocking fee calculator here so customers can see the exact amount before they start a return.
Order confirmation email: Repeat the key points so the customer has the policy in writing.

3. Train your support team
Make sure anyone handling returns knows the restocking fee percentage for each product category, when to waive it, and how to explain it without causing friction. A script like “Our policy includes a 15% restocking fee to cover return processing, and we waive it if the item arrived damaged or defective” usually handles most objections.

4. Review and adjust quarterly
Track your return volume, processing costs, and customer feedback. If your costs go up, you may need to increase the percentage. If complaints are high, consider lowering it or offering store credit as an alternative to a cash refund with a fee. Use this restock fee calculator to model different rates before changing your policy.

FAQs

When should I charge a restocking fee?

Charge a restocking fee when a customer returns an item that is in sellable condition but requires inspection, repackaging, or re-shelving. Most sellers apply the fee to voluntary returns where the customer changed their mind, ordered the wrong size, or simply no longer wants the product. You should not charge a restocking fee when the return is caused by your error, such as shipping the wrong item, delivering a defective product, or damage during transit. Some businesses also waive the fee for exchanges rather than refunds, since the customer is keeping a product and the sale is preserved.
Is it legal to charge a restocking fee?

Yes, restocking fees are legal in the United States as long as the fee is disclosed to the customer before they complete their purchase. Some states have specific requirements. California, for example, requires retailers to post their restocking fee policy at the point of sale; if they do not, the customer can demand a full refund. In the EU, sellers generally cannot charge a restocking fee on online purchases returned within the 14-day cooling-off period, except for certain exempt categories like custom-made goods and unsealed hygiene products. Always check the consumer protection laws in the jurisdictions where you sell.
Should restocking fees be refunded if the item was defective?

Yes. If a customer returns a product because it arrived broken, malfunctioning, or not as described, charging a restocking fee is unfair and often illegal. Most consumer protection laws treat defective returns differently from voluntary returns. Keeping a restocking fee on a defective item also creates chargeback risk: the customer can dispute the charge with their credit card company, and you will likely lose. Best practice is to issue a full refund including any restocking fee already deducted, cover return shipping, and apologize for the inconvenience. This approach protects your reputation and reduces the chance of a negative review.
What is a standard restocking fee percentage?

The standard restocking fee percentage is 10% to 25%, with 15% being the most common rate across general retail. Electronics, furniture, and custom items typically sit at the upper end (15% to 25%) because returns are expensive to process, while clothing and low-cost accessories usually warrant a lower fee around 10% to 15%. The average restocking fee charged by big-box retailers like Best Buy and Sephora has historically been around 15%, which is a safe starting point if you are setting one up for the first time. Run your actual return processing costs through a restock fee calculator to confirm the rate covers what you spend per return.
How do I calculate a restocking fee?

Multiply the item’s purchase price by the restocking fee percentage. For example, a $120 item with a 15% restocking fee equals an $18 restocking fee, which is deducted from the customer’s refund (they get $102 back). The restocking fee calculator at the top of this page does the math for you instantly: enter the price, enter the percentage, and the tool returns the exact fee amount and the refund the customer will receive. Run several rates side by side to see how a 10% vs. 15% vs. 20% policy affects what you actually keep.
How much is a restocking fee on Shopify?

Shopify does not set a default restocking fee, so the amount is whatever you choose, typically between 10% and 25% of the item price. To apply one on Shopify, open the order, click Refund, and either enter a reduced refund amount manually or use the Refund adjustment field to deduct the restocking fee as a separate line. Shopify’s built-in Returns settings (Settings to Policies and Returns) also let you configure a default restocking fee that applies automatically to self-serve returns. For example, a customer returning a $200 item with a 15% restocking fee gets $170 refunded and you keep $30 to cover processing.

Conclusion: Why Every Store Owner Should Use the Restocking Fee Calculator

A clear restocking fee policy protects your margins and sets fair expectations for customers. This restock fee calculator removes the guesswork from return costs so you can focus on running your store. Instead of working out fees by hand for every return, plug in the item price and your restocking fee percentage and get an instant answer. The math is the same whether you sell on Shopify, Amazon, eBay, or your own custom site, but the way you display and apply the fee is what keeps customers from disputing it.

The bottom line: charge a fair fee, disclose it clearly, and apply it consistently. That approach keeps your return process efficient and your customers informed. You might also like our other eCommerce calculators.

Glossary of Technical Terms

Restocking Fee: A charge deducted from a customer’s refund to cover the costs of receiving, inspecting, and reshelving a returned product.
Restocking Percentage: The portion of the original item price withheld as a restocking fee, typically between 10% and 25%.
Return Costs: The combined labor, packaging, inspection, and storage expenses tied to processing a returned item.
Cooling-Off Period: A legally mandated window (e.g., 14 days in the EU) during which a buyer can cancel an online purchase without penalty.
Restock Item (Shopify): A toggle in the Shopify refund screen that returns inventory to your stock count when you process a refund.

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