> ## 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.

# Net Revenue: Revenue After Discounts and Refunds

> Track net revenue from Shopify orders after discounts and refunds. The primary metric for profitability analysis with formula and examples.

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

## Formula

<Info>
  **Net Revenue** = **Gross Revenue** − **Discounts** − **Refunds**
</Info>

### Formula Components

| Metric                                                                 | Definition                                   |
| ---------------------------------------------------------------------- | -------------------------------------------- |
| [**Gross Revenue**](/reference/metrics/orders/revenue/gross-revenue)   | Product revenue before discounts and refunds |
| [**Discounts**](/reference/metrics/orders/adjustments/discount-amount) | Total discount amount applied to orders      |
| [**Refunds**](/reference/metrics/orders/adjustments/refund-amount)     | Total refund amount issued                   |

| Metadata        |                             |
| --------------- | --------------------------- |
| **Type**        | Currency                    |
| **Data Source** | [Shopify](/sources/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              |

***

## Related Metrics

| Metric                                                           | Relationship                                                  |
| ---------------------------------------------------------------- | ------------------------------------------------------------- |
| [Gross Revenue](/reference/metrics/orders/revenue/gross-revenue) | Revenue before deductions (Net = Gross − Discounts − Refunds) |
| [Total Revenue](/reference/metrics/orders/revenue/total-revenue) | Includes shipping and taxes                                   |
| [Net AOV](/reference/metrics/orders/aov/net-aov)                 | Net Revenue ÷ Order Count                                     |
| [Orders](/reference/metrics/orders/counts/orders)                | Count of orders generating this revenue                       |

[See all Revenue metrics →](/reference/metrics/orders/revenue)