1,120 is the example result. Read it using the units and relationship stated below.
Chargeback Cost uses chargebacks, fee per chargeback, average lost sale.
Keeping timing visible in cash decisions
For chargeback cost, the relationship is Result = [Chargebacks] × ([Fee per chargeback] + [Average lost sale]). The amount depends on the supplied chargebacks, fee per chargeback, rather than a live market price or a value imported from another record. Profit does not state when money reaches the bank. Receivables, supplier payments and inventory can absorb cash while sales remain healthy. A cash comparison needs the payment window and outstanding balance, not only the invoice total.
What the model includes
Result = [Chargebacks] × ([Fee per chargeback] + [Average lost sale]) Record whether amounts include tax, credit notes or disputed balances. Where a model converts annual flows into days, keep the balance and flow definitions consistent. Supplier terms and collection delays may move independently. Use the result to identify the next collection or payment question. A financing decision also needs contractual fees, settlement timing and repayment terms that may sit outside this model.
Example with the supplied inputs
Chargebacks: 8; Fee per chargeback: 20; Average lost sale: 120. Result: 1,120. The values are illustrative.
Compare one changed input
Fee per chargeback changes from 20 to 22. The result becomes 1,136. All other inputs remain fixed.
Calculation rule
Result = [Chargebacks] × ([Fee per chargeback] + [Average lost sale])
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Chargebacks | 8 | Use the source quantity represented by chargebacks. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Fee per chargeback | 20 | Use the source quantity represented by fee per chargeback. Keep the counted population fixed and avoid mixing a unit value with a period total. |
| Average lost sale | 120 | Use the source quantity represented by average lost sale. Keep the counted population fixed and avoid mixing a unit value with a period total. |
Output: 1,120 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.
How to use the page
Collect the inputs
Gather Chargebacks, Fee per chargeback, Average lost sale. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Fee per chargeback on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 1,120.
Change Fee per chargeback from 20 to 22 while keeping every other value fixed. The result becomes 1,136. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026