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Returned Inventory Recovery Calculator

Calculate future net recovery from a batch of returned goods after handling, reconditioning and disposal, without subtracting old costs twice.

By PriceAndProfit Editorial Updated

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Fill in the fields: the result appears under the form, with the formula below it.

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Formula and cost boundary

Net recovery = returned units × [recovery share × (net resale price − reconditioning) − handling − (1 − recovery share) × disposal]

The recovery percentage is the share of returned units expected to be sold again; it is not a percentage of original revenue. Enter net resale proceeds after resale selling fees. Reconditioning applies only to recoverable units; handling applies to every returned unit and disposal applies to the remainder. Original product cost, original shipping and customer refunds are outside this forward decision boundary. Expected recovered units can be fractional. Negative recovery remains visible; a batch with zero returns has no per-return denominator.

Worked example: Partial recovery of returned batch

The following inputs are hypothetical values for checking the calculation. They are not recommended prices, wages, margins or platform charges. Keep the units and period shown in each label when replacing them with your own records.

Inputs for this worked example
InputExample value
Returned units 100 units
Returned units expected to be resold 60%
Net resale proceeds per recovered unit $30
Reconditioning per recovered unit $4
Handling per returned unit $2
Disposal per unrecovered unit $1
Outputs from the displayed inputs
ResultCalculated value
Net future recovery $1,320
Net resale proceeds $1,800
Incremental recovery costs $480
Net recovery per returned unit $13.2/unit

Using the result

Save the input set alongside the source date of each quote or cost record. Review the cost boundary before comparing this result with another report: a contribution measure may exclude overhead, and a cash measure follows payment dates. Display rounding does not change the underlying assumptions. Recalculate when an input changes; the tool does not predict future sales or collections.

Are any rates supplied automatically?

No. Numeric fields are your inputs. Example values demonstrate arithmetic only. Check your contracts and records for the amounts that apply to your business.

Why might a result be unavailable or negative?

A missing denominator or inconsistent inputs can make the calculation undefined. Those combinations are rejected or labeled explicitly. A valid negative result remains visible because it may identify a loss or cash shortfall.

Method reference: OpenStax: Relevant Information for Decisions. Checked October 22, 2026. Relevant future cost and counterfactual comparisons; all commercial assumptions are supplied by the user.

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