> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Refund Gross Rate: Measure Return Impact on Revenue

> Track total refunds as a percentage of gross revenue. Identify which order cohorts have high return rates and measure the impact on your top-line.

<Tip>
  Refund Gross Rate shows what portion of your gross revenue is being returned—a key indicator of product satisfaction and sizing accuracy.
</Tip>

## Formula

<Info>
  **Refund Gross Rate** = ( [**Refund Amount**](/reference/metrics/orders/adjustments/refund-amount) ÷ [**Gross Revenue**](/reference/metrics/orders/revenue/gross-revenue) ) × 100
</Info>

### Formula Components

| Metric                                                                   | Definition                                 |
| ------------------------------------------------------------------------ | ------------------------------------------ |
| [**Refund Amount**](/reference/metrics/orders/adjustments/refund-amount) | Total dollar value of all refunds issued   |
| [**Gross Revenue**](/reference/metrics/orders/revenue/gross-revenue)     | Total revenue before discounts and refunds |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Percentage                  |
| **Data Source** | [Shopify](/sources/shopify) |
| **Aggregation** | Ratio                       |

***

## Example

Your store generated **\$125,000 in gross revenue** in January with **\$8,750 in total refunds**.

| Metric                | Value     | Calculation               |
| --------------------- | --------- | ------------------------- |
| Gross Revenue         | \$125,000 | —                         |
| Refund Amount         | \$8,750   | —                         |
| **Refund Gross Rate** | **7.0%**  | \$8,750 ÷ \$125,000 × 100 |

***

## How It Works

This metric divides total refund dollars by gross revenue, giving you the percentage of sales value being returned. Unlike Refund %, which counts refunded orders, this rate measures the financial impact of returns on your top-line revenue.

***

## When to Use

| Scenario                    | Action                                               |
| --------------------------- | ---------------------------------------------------- |
| Benchmarking return rates   | Compare against industry average (8-10% for apparel) |
| Evaluating product quality  | Investigate products with rates above 10%            |
| Assessing sizing/fit issues | High rates often signal sizing guide problems        |
| Measuring seasonal patterns | Track holiday vs. regular period refund rates        |

***

## Related Metrics

| Metric                                                                   | Relationship                             |
| ------------------------------------------------------------------------ | ---------------------------------------- |
| [Refund Amount](/reference/metrics/orders/adjustments/refund-amount)     | Dollar value used in numerator           |
| [Gross Revenue](/reference/metrics/orders/revenue/gross-revenue)         | Denominator — revenue before adjustments |
| [Refund Net Rate](/reference/metrics/orders/adjustments/refund-net-rate) | Same calculation against net revenue     |
| [Discount %](/reference/metrics/orders/adjustments/discount-percent)     | Another adjustment rate metric           |

[See all Adjustments metrics →](/reference/metrics/orders/adjustments)