Refund Rate Impact Simulator

Turn your refund rate into a real monthly dollar cost. COGS loss, affiliate commission loss, return shipping, and TikTok's Refund Admin Fee — every line itemised. Verified against TikTok Seller University policy.

Display Currency

Display symbol only — enter all amounts in your local currency. No conversion applied.

Order volume & refund split

Monthly OrdersiTotal orders per month. Used to calculate how many refunds you get at your rate.

Total Refund / Return Rate (%) iYour combined refund + return rate. TikTok Shop average is 5–8%. Above 15% impacts SPS score and search ranking.

Pre-shipment Cancels (% of total refunds)iPer TikTok Seller University: if a buyer cancels BEFORE shipping and meets auto-cancel criteria, NO Refund Admin Fee applies and no return shipping cost. Enter what % of your refunds happen before the order ships.

Post-delivery Returns (% of total refunds)iAuto-calculated as 100% minus pre-ship cancels. These incur the full Admin Fee, COGS loss, and return shipping.

Product & fees

Selling Price ($)iUsed to calculate the Referral Fee → Refund Admin Fee. Also used for the ≤$10 refund-without-return check.

Product Cost / COGS ($)iEvery returned unit is a lost product cost. You do not get COGS back on refunds.

TikTok Referral Fee (%)iUsed to calculate Refund Admin Fee: MIN(Referral Fee × 20%, $5.00) per SKU, then multiplied by SKU count. Updated TikTok Seller University formula, May 2025.

Average SKUs per OrderiThe $5 Refund Admin Fee cap applies per SKU — not per order. If orders typically contain 2 SKUs, the cap is $10 total per returned order. Default: 1.

Advanced — platform discount impact on referral fee base

Platform Discount per Order ($)iTikTok-funded vouchers increase your referral fee base. Per TikTok Seller University official formula: Fee = Rate × (Customer Payment + Platform Discount − Tax). Find platform discount amounts in Seller Center → Settlement Report. Most sellers leave this at $0. Leave $0 if you don't run TikTok-funded HOT DEAL promotions

Affiliate commission loss — the most understated refund cost for affiliate-driven shops

Affiliate Commission Rate (%)iPer TikTok Seller University: if a refund is initiated BEFORE commission is paid to the creator (within ~15 days of delivery), TikTok claws it back — you owe nothing. But if refund is initiated AFTER payout, the commission is non-refundable. Use the toggle below.

Seller Discount per Order ($)iPer TikTok Seller University, affiliate commission base = (Item Price − Seller Discount) × rate. Enter any coupon or discount you fund per order. Leave $0 if no seller discount.

Was commission already paid to creator?iTikTok pays affiliates approximately 15 days after delivery. If returns mostly happen within 15 days, select "Not yet" — commission is clawed back automatically. If you have late returns, select "Yes — already paid" to include this as a cost.

Fulfillment & return shipping

Using Fulfilled by TikTok (FBT)?

Return Shipping Cost per Order ($)iCarrier cost per returned order. Split between you and TikTok based on SPS score and fault type. Auto-zeroed for items ≤$10 (refund-without-return policy).

Return fault typeiBuyer fault (wrong size, changed mind) = SPS-based split. Seller fault (defective, wrong item, damaged) = 100% seller pays regardless of SPS score. Enter the mix below.

Buyer fault returns (% of post-delivery returns)iWrong size, changed mind, buyer remorse. TikTok splits return shipping: 50% your share (SPS < 4) or 20% your share (SPS ≥ 4).

Seller fault returns (% of post-delivery returns)iDefective product, wrong item, damaged in transit. You pay 100% of return shipping regardless of SPS score.

Your Shop Performance Score (SPS) — applies to buyer fault returnsiBelow 4.0: you pay 50% of return shipping on buyer-fault returns. At 4.0+ (Star Seller): you pay only 20%.