Net Revenue: Revenue After Discounts and Refunds

Revenue after subtracting discounts and refunds from gross revenue—the primary metric for profitability analysis.

Formula

Net Revenue = Gross Revenue − Discounts − Refunds

Formula Components

Metric	Definition
Gross Revenue	Product revenue before discounts and refunds
Discounts	Total discount amount applied to orders
Refunds	Total refund amount issued

Metadata
Type	Currency
Data Source	Shopify
Aggregation	Sum

Example

Your store generated $156,400 in net revenue this quarter:

Component	Amount	Impact
Gross Revenue	$178,200	Starting point
Discounts	−$15,400	8.6% discount rate
Refunds	−$6,400	3.6% refund rate
Net Revenue	$156,400	Final revenue

How It Works

Net Revenue starts with Gross Revenue (product sales before adjustments), then subtracts all discount codes and promotional offers applied at checkout, and all refunds issued post-purchase. This gives you the actual revenue retained from customer transactions.

When to Use

Scenario	Action
Profitability analysis	Use Net Revenue as your baseline for margin calculations
Discount impact assessment	Compare to Gross Revenue to measure promotion costs
Refund rate monitoring	Track refund amount as a percentage of gross
Financial reporting	Report Net Revenue as actual earned revenue

Metric	Relationship
Gross Revenue	Revenue before deductions (Net = Gross − Discounts − Refunds)
Total Revenue	Includes shipping and taxes
Net AOV	Net Revenue ÷ Order Count
Orders	Count of orders generating this revenue

See all Revenue metrics →

Gross Revenue NC Total Revenue

⌘I

​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics