Product Return Rate Formula: Excel, DAX, Calculator & Example

Simple formula

Returned Products / Products Sold

The formula uses these inputs:

Returned Products: enter your value in the calculator or spreadsheet.
Products Sold: enter your value in the calculator or spreadsheet.

Excel formula

Use this Excel formula as a starting point. Replace the sample cell references with the cells in your worksheet.

=IFERROR(B2/C2,0)

Google Sheets formula

In most cases, the Google Sheets version uses the same structure as Excel.

=IFERROR(B2/C2,0)

Power BI DAX measure

Use this DAX pattern as a starting point and rename measures or columns to match your Power BI model.

Product Return Rate =
DIVIDE(
    [Returned Products],
    [Products Sold]
)

SQL example

This generic SQL pattern can be adapted to your warehouse table names and column names.

SELECT
    /* replace with your formula */ AS product_return_rate
FROM kpi_data;

Product Return Rate calculator

Returned Products Products Sold

Result—

How to interpret Product Return Rate

Use this KPI with trend data, targets, and related metrics. A single value is less useful than a consistent definition tracked over time.

Important: KPI definitions can vary by company, accounting policy, analytics platform, or reporting standard. Keep the definition consistent when comparing periods.

Common mistakes

Mixing different time periods in the numerator and denominator.
Using totals that do not match the KPI definition used by your company.
Comparing results across teams or industries without context.

Related KPI formulas

Frequently asked questions

What is the Product Return Rate formula?

The common Product Return Rate formula is: Returned Products / Products Sold.

How do you calculate Product Return Rate in Excel?

Use this Excel formula pattern: =IFERROR(B2/C2,0). Replace the cell references with your own data.

Can this KPI be calculated in Power BI?

Yes. Use the DAX measure on this page as a starting point and adjust table and column names to match your model.

Product Return Rate Formula

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