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Free tool

Chargeback True Cost Calculator

Estimates what a single lost chargeback really costs an online or Stripe seller once fulfillment, the dispute fee and staff time are counted, and how much new revenue it takes to earn that money back.

Your numbers

Results update as you type.

Your estimate

Cash out of pocket per chargeback...
Total loss versus a kept sale...
New revenue needed to earn the cash back...
Loss as a multiple of the order amount...

Estimates only. Assumptions are listed below, and you can change every input.

A lost chargeback looks like a single line on your Stripe balance: the order amount pulled back plus a dispute fee. The real damage is wider. The goods or service already went out the door, someone on your team spent time reading the notice and hunting for receipts, and the profit you were counting on is gone. Most sellers underestimate this, which is why they under-invest in fighting disputes and in preventing them.

This calculator adds up the pieces you actually pay for: the fulfillment cost of the order, your processor's dispute fee, and staff time at the hourly rate you enter. It reports the cash that leaves your business, the total loss compared with a sale you kept, and how much new revenue at your net margin it takes to earn the cash back. Every constant is an input, so the result is only as good as the numbers you type in.

How to use this tool

  1. Enter the order amount that was disputed and what it cost you to fulfill that order, including goods and shipping.
  2. Set your processor's dispute fee, the minutes your team spends per dispute, and an hourly rate for that time.
  3. Enter your net profit margin on new sales, then read the cash loss, the loss versus a kept sale, and the revenue needed to recover it.

What the math assumes

  • The dispute is lost and the full order amount is reversed; a partial reversal is not modeled.
  • Fulfillment cost is money already spent that is not recovered, such as goods, shipping or delivery labor.
  • The dispute fee defaults to $15 because that is what many US processors list; edit it to match your own fee schedule.
  • Staff time is valued at the hourly rate you enter, with no overhead multiplier added on top.
  • Recovery revenue divides the cash loss by your net margin, so a 12% margin means roughly $8.33 of new sales for every $1 lost.

Frequently asked questions

Why are there two loss figures?

Cash out of pocket counts only money that actually leaves your business: goods, fee and time. The loss versus a kept sale also counts the revenue you would have kept if the order had not been reversed, which is the figure to use when you compare against the cost of fighting.

Should I include the dispute fee if my processor refunds it when I win?

This tool models a lost dispute, where the fee is charged either way. If you are deciding whether to contest a case, use the Fight or Accept Chargeback Calculator instead, which handles refunded fees.

Does the calculator include the effect on my chargeback ratio?

No. Ratio-related costs such as monitoring program fees or reserve holds vary by processor and are not part of this estimate. Use the Chargeback Ratio Headroom Checker to see how close you are to a threshold.

Link to this toolhttps://disputeloom.com/tools/chargeback-true-cost/

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More free tools from DisputeLoom

  • Fight or Accept Chargeback Calculator: Weighs the expected value of contesting a dispute against simply accepting it, using the disputed amount, your realistic win odds and the time an evidence packet takes to build.
  • Chargeback Ratio Headroom Checker: Shows a card-accepting seller's current chargeback rate and how many more disputes the business can absorb this month before crossing a network monitoring threshold.

Fight chargebacks with a complete evidence packet

Chargeback evidence packager for Stripe sellers.

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