> ## 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 Per Order: Average Refund Amount Per Order

> Track the average refund amount per order from your Shopify store. Measure refund impact on profitability and identify product or fulfillment issues.

<Tip>
  The average refund amount issued per order.
</Tip>

## Formula

<Info>
  **Refund Per Order** = [**Refund Amount**](/reference/metrics/orders/adjustments/refund-amount) ÷ [**Orders**](/reference/metrics/orders/counts/orders)
</Info>

### Formula Components

| Metric                                                                   | Definition                               |
| ------------------------------------------------------------------------ | ---------------------------------------- |
| [**Refund Amount**](/reference/metrics/orders/adjustments/refund-amount) | Total dollar value of all refunds issued |
| [**Orders**](/reference/metrics/orders/counts/orders)                    | Total number of completed orders         |

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

***

## Example

Your store processed **2,450 orders** in February with **\$8,575** in total refunds:

| Metric               | Value      |
| -------------------- | ---------- |
| Refund Amount        | \$8,575    |
| Order Count          | 2,450      |
| **Refund Per Order** | **\$3.50** |

***

## How It Works

Refund Per Order divides total refund dollars by total orders—not just refunded orders. This gives you the average refund liability per transaction, helping you understand the true cost of returns across your entire order base.

***

## When to Use

| Scenario                   | Action                                                         |
| -------------------------- | -------------------------------------------------------------- |
| Tracking return cost       | Compare against Net AOV to understand refund impact on margins |
| Evaluating product quality | Higher values may signal product issues or unmet expectations  |
| Assessing sizing guides    | Apparel brands should track this alongside return reasons      |
| Comparing campaigns        | Identify traffic sources with higher post-purchase refunds     |

***

## Related Metrics

| Metric                                                               | Relationship                                             |
| -------------------------------------------------------------------- | -------------------------------------------------------- |
| [Refund Amount](/reference/metrics/orders/adjustments/refund-amount) | Numerator: total refund dollars                          |
| [Orders](/reference/metrics/orders/counts/orders)                    | Denominator: transaction count                           |
| [Refund %](/reference/metrics/orders/adjustments/refund-percent)     | Percentage of orders refunded                            |
| [Net AOV](/reference/metrics/orders/aov/net-aov)                     | Order value after refunds—compare to gauge refund impact |

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