Measure refunds as a share of gross sales, the figure that reconciles gross and net revenue.
The refund rate is the share of gross sales value that value refunded represents, expressed as a percentage. The same figure is also shown per 1,000 and as a "one in every N" odds statement, which is easier to reason about when the rate is very small. Absolute counts hide scale — a rate normalises the number so you can compare periods, channels or cohorts of different sizes, where lower is better.
Refund Rate
Refund Rate = Value refunded ÷ Gross sales value × 100
Refund Rate = Value refunded ÷ Gross sales value × 100 The refund rate is the share of gross sales value that value refunded represents, expressed as a percentage. The same figure is also shown per 1,000 and as a "one in every N" odds statement, which is easier to reason about when the rate is very small.
Absolute counts hide scale — a rate normalises the number so you can compare periods, channels or cohorts of different sizes, where lower is better.
This calculator takes 2 inputs: Value refunded, Gross sales value. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.