Refund rate
Refund rate is refunded revenue as a share of gross revenue charged in the same period. A channel with a high refund rate brings buyers who did not get what the ad promised; counting refunds against the right channel stops it from looking profitable.
Formula
refund rate = refunded amount(period) / gross charges(period) × 100Add up refunds issued in the period, divide by the gross amount charged in the same period, and multiply by 100.
Worked example
| Gross charges from Meta Ads in July | $3,000 |
|---|---|
| Refunds on those customers in July | $240 |
- $240 / $3,000 × 100 = 8%
Meta Ads has an 8% refund rate in July.
How ProductLense shows it
ProductLense shows refunds in USD on the Revenue page and per channel in the revenue by channel table, and subtracts them from net revenue before profit, ROAS and payback. A refund made later reduces the period in which it happened, not the original sale’s period.
A billing connection that exposes refunds, which every connector does in some form, or refunds sent through the payment API with kind set to refund.
Refund rate: questions
- What is refund rate?
- Refund rate is refunded revenue as a share of gross revenue charged in the same period. A channel with a high refund rate brings buyers who did not get what the ad promised; counting refunds against the right channel stops it from looking profitable.
- How do you calculate refund rate?
- Add up refunds issued in the period, divide by the gross amount charged in the same period, and multiply by 100. For example, $240 refunded against $3,000 charged is a refund rate of 8%.
- Where does ProductLense show refund rate?
- ProductLense shows refunds in USD on the Revenue page and per channel in the revenue by channel table, and subtracts them from net revenue before profit, ROAS and payback. A refund made later reduces the period in which it happened, not the original sale’s period.
- What does ProductLense need to calculate refund rate?
- A billing connection that exposes refunds, which every connector does in some form, or refunds sent through the payment API with kind set to refund.
- How is refund rate different from churn?
- A refund reverses money already paid; churn stops future payments. A customer can churn without a refund, or be refunded and stay. Both lower revenue, and ProductLense attributes both to the customer’s first-touch channel.
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