Net Revenue
Net Revenue is the total income a business earns from sales after deducting returns, refunds, discounts, and allowances from gross revenue. It represents the actual money your business takes in from customers and is the most accurate measure of top-line performance. Net revenue is what hits your bank account after all customer-facing adjustments.
Net Revenue Calculator
Inputs
Results
Net Revenue
$85,000.00
gross_revenue−returns−discounts−allowancesDeduction Rate
15.0%
((returns+discounts+allowances)gross_revenue)×100How to Calculate Net Revenue
Why Net Revenue Matters
Gross revenue can paint a misleadingly rosy picture when returns and discounts are eating into your actual income. Net revenue shows the true scale of your business and is the starting point for every meaningful profitability calculation. Tracking the gap between gross and net revenue reveals exactly how much discounting and returns are costing you.
Industry Benchmarks
What is a good Net Revenue? Based on industry benchmarks, a Net Revenue considered net revenue retention is 85% - 95% of gross, discount impact is 5% - 15% of gross, and return impact is 5% - 10% of gross. These figures vary by industry, product category, and business model, so use them as directional guidance rather than hard targets.
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Average Order Value (AOV)
Average Order Value is the mean dollar amount spent each time a customer places an order on your store. It is calculated by dividing total revenue by the number of orders over a given period. AOV is one of the simplest yet most impactful levers for growing revenue without acquiring new customers.
Ecommerce Conversion Rate
Ecommerce Conversion Rate is the percentage of website visitors who complete a purchase. It is calculated by dividing the number of sessions that result in an order by the total number of sessions. Conversion rate is a core indicator of how well your store turns traffic into paying customers.
Revenue Per Session
Revenue Per Session is the average amount of revenue generated by each visitor session on your store. It is calculated by dividing total revenue by total sessions. Unlike conversion rate, this metric accounts for both the likelihood of a purchase and the value of that purchase.
Refund Rate
Refund Rate is the percentage of orders that result in a full or partial refund. It is calculated by dividing the number of refunded orders by the total number of orders. A high refund rate can indicate product quality issues, misleading product descriptions, or fulfillment problems.
Cart Abandonment Rate
Cart Abandonment Rate is the percentage of shoppers who add items to their cart but leave without completing the purchase. It is calculated by dividing the difference between carts created and carts completed by the total carts created. This metric reveals how much potential revenue is slipping through the cracks at checkout.
Inventory Turnover
Inventory Turnover measures how many times a business sells and replaces its inventory over a given period. It is calculated by dividing cost of goods sold by the average inventory value. A higher turnover means you are efficiently converting inventory into sales.
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