KPI Tree

Stripe Metric

Payments

Refund Rate = (Refunded Transactions / Total Transactions) × 100

Refund rate is the percentage of transactions that are refunded, either fully or partially. It indicates customer satisfaction issues, product problems, or policy-related returns.

Full guide: definition, formula, and benchmarks
StripePayments

Refund Rate

Refund rate is the percentage of transactions that are refunded, either fully or partially. It indicates customer satisfaction issues, product problems, or policy-related returns.

How to calculate refund rate

Refund Rate = (Refunded Transactions / Total Transactions) × 100

Why refund rate matters for Stripe users

High refund rates erode revenue and may signal product quality issues, misleading marketing, or inadequate customer expectations management. They also increase processing costs.

Stripe users can segment refunds by reason, product, and time-to-refund to identify systemic issues versus isolated incidents and take targeted corrective action.

Understand and act on refund rate with KPI Tree

Pull Stripe refund data into your warehouse and monitor refund rates in KPI Tree. Link refund rate to net revenue and customer satisfaction in a revenue quality tree.

Assign product and customer experience ownership with alerts when refund rates exceed historical norms for any product or segment.

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