Product Return Refund Calculator
Calculate your exact cash refund or store credit amount when returning retail merchandise, including sales tax adjustments and non-refundable fees.
Net Return Settlement Formula
Refundable Subtotal = (Price - Restocking Fee) + Proportional Sales Tax; Cash Refund = Refundable Subtotal - Return Postage - Handling- Sales Tax Recovery: State sales tax is legally refunded proportionally on the refunded merchandise balance in most states.
- Outbound Shipping Rule: Original outbound shipping paid to receive the goods is generally non-refundable unless the return is due to merchant error.
- Store Credit Bonus: Retailers frequently offer a 10%–15% bonus incentive to accept store credit instead of original payment tender.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes items are in returnable condition with tags attached and proof of purchase.
Frequently Asked Questions
Do stores have to refund sales tax when you return an item?
Yes. In the United States, retailers are legally obligated by state tax authorities to refund the sales tax collected on returned items, proportionate to the refunded merchandise dollar amount.
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