Calculate the revenue refund rate
Revenue refund rate = refunded amount ÷ original gross revenue × 100
If $100 is returned from $500 in original sales, enter 20%. If two orders receive only partial refunds, counting two out of ten orders as 20% can overstate the amount actually returned. Keep the refund amount and the order count separate.
A worked example
Ten $50 orders create $500 of gross revenue. The example applies 3% plus $1 per order in fees, $20 acquisition cost per order and $40 in other fixed costs. Without refunds, contribution is $235. Returning 20% of revenue costs $100 and leaves $135.
Contribution = gross sales − refunds − original fees − acquisition spend − fixed costs
The example reaches zero contribution when $235 of the $500 gross revenue is returned: a 47% revenue refund rate. That is an arithmetic boundary under these assumptions, not an acceptable customer-service target.
What happens to transaction fees?
This tool keeps the original percentage and per-order fees on the original sales. It does not assume that a refund also returns those fees. Check your provider’s actual contract and payment method; additional refund, dispute, currency-conversion and support charges are not included here.
Stripe’s refund documentation describes refund processing and reversals. Use your own transaction and fee records rather than assuming every refund has identical economics.
What if the no-refund scenario already loses money?
There is no positive refund allowance when the operation already loses money with zero refunds. Zero original orders or a zero sales price cannot define a refund-revenue percentage boundary. The calculator marks that boundary as undefined.
Compare an alternative price with the bundle calculator, and inspect the acquisition limit with the break-even ROAS tool.
Review the actual launch
Keep purchase dates, refund dates, fees and payouts on one reporting basis. A net bank payout is not gross revenue; subtracting fees again would double-count them. This calculator models a period, while the paid launch workbook provides a place to log actual transactions and decision notes.
What this tool does not include
Results cover only the entered costs and assumptions. Tax, financing, exchange rates, unentered support or production costs and the value of your time are excluded. This calculation does not verify market demand or guarantee income.