Cancellation Rate Calculator


What is Cancellation Rate Calculator?

Calculate the percentage of canceled orders out of the total number of transactions with a cancellation rate calculator. In businesses where cancellations can negatively impact revenue and customer satisfaction, it is important to calculate a cancellation rate. Businesses can monitor their performance, identify areas of improvement, and take necessary steps to reduce cancellations by calculating the cancellation rate. The calculator can be used by various businesses such as e-commerce websites, service providers, restaurants, and others to measure their performance in terms of order cancellations.


The formula to calculate cancellation rate is:

CANC = (OC / T) * 100

Where, CANC = Cancellation Rate (%) OC = Number of Orders Canceled T = Total Number of Transactions


Suppose a restaurant received 100 orders in a day, out of which 5 orders were canceled due to various reasons. Using the formula, the cancellation rate can be calculated as follows:

CANC = (5 / 100) * 100 CANC = 5%

This means that the restaurant had a cancellation rate of 5% for that day.

How to Calculate

To use the cancellation rate calculator, you need to know the number of orders canceled and the total number of transactions. The steps to calculate the cancellation rate are as follows:

  1. Enter the number of orders canceled in the input field provided.
  2. Enter the total number of transactions in the input field provided.
  3. Click on the calculate button to get the cancellation rate.
  4. The cancellation rate will be displayed on the web page.


What is a good cancellation rate for a business?

For a business to have a good cancellation rate, it depends on its industry and its nature. Generally, a low cancellation rate is considered good. For example, in the e-commerce industry, a cancellation rate of less than 2% is considered good, while in the restaurant industry, a cancellation rate of less than 5% is considered good.

How can businesses reduce their cancellation rate?

Businesses can reduce their cancellation rate by improving their product or service quality, providing better customer service, offering flexible cancellation policies, improving the delivery time, and keeping the customers informed about the status of their orders.

What are the consequences of a high cancellation rate?

A high cancellation rate can lead to a loss of revenue, reduced customer satisfaction, and a negative impact on the reputation of the business. It can also lead to additional costs such as restocking fees, shipping fees, and other operational costs associated with canceled orders.


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