The method
How it is worked out
Cost = disputes × (order value + fee + goods + staff time)
- disputes
- Orders × chargeback rate
Chargeback Cost Calculator
Add up what a chargeback really costs once the fee, lost goods, staff time and the ratio risk are counted, and see what prevention is worth. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Won disputesSome chargebacks are reversed; this assumes none are.
- Scheme programmesAbove roughly 0.9% schemes may impose monthly fines not modelled.
- Fraud vs friendlyFriendly fraud responds to clearer descriptors, not just tools.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Chargeback Cost Calculator
Put a real number on what disputes cost your business: the refund, the fee, the goods you never get back, staff time, and the risk of card-scheme monitoring. Then see whether a prevention tool pays for itself.
How it works and an example to tryShow less
How to use the result
Disputes per month are orders times the chargeback rate. Each dispute costs the order value, the chargeback fee, the cost of goods and staff time at your hourly rate. The tool applies the expected reduction from a prevention tool and subtracts its subscription to show the net saving.
Example to try
3,000 orders at £85 with a 0.6% dispute rate produce 18 chargebacks costing about £3,040 a month. A £300 tool cutting disputes 40% saves £1,215 net. At 0.9% you approach the level where card schemes impose fines.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
Ecommerce and subscription businesses, marketplaces, travel and ticketing firms and any merchant deciding whether to buy fraud or dispute-management software.
Mistakes worth avoiding
- Counting only the chargeback fee and ignoring the lost goods and revenue.
- Letting the dispute rate drift towards 1% without noticing the scheme thresholds.
- Buying prevention software before fixing unclear billing descriptors, the cheapest fix.
Questions
What does the Chargeback Cost Calculator do?
Add up what a chargeback really costs once the fee, lost goods, staff time and the ratio risk are counted, and see what prevention is worth.
How should I use the result?
Disputes per month are orders times the chargeback rate. Each dispute costs the order value, the chargeback fee, the cost of goods and staff time at your hourly rate. The tool applies the expected reduction from a prevention tool and subtracts its subscription to show the net saving.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with a chargeback cost calculator?
Counting only the chargeback fee and ignoring the lost goods and revenue. Letting the dispute rate drift towards 1% without noticing the scheme thresholds. Buying prevention software before fixing unclear billing descriptors, the cheapest fix.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.