Calculate cancellation rate from canceled and total transactions, or find allowed cancellations for a target rate and expected total.
Cancellation Rate Formula
Cancellation Rate (%) = (Canceled / Total) * 100
- Canceled = number of canceled transactions in the period
- Total = canceled + completed transactions in the same period
If you only have canceled and completed counts, add them to get Total. For target planning, the maximum allowed cancellations is:
Max Canceled = floor(Total * Target Rate / 100)
Use the same time window and the same definition of "transaction" on both sides of the ratio. Pending or in-progress orders should be excluded until they resolve, otherwise the rate will drift as they close.
Reference Tables
Use these as starting points. Your own historical baseline matters more than any external benchmark.
| Rate | Read | Action |
|---|---|---|
| 0% to 2% | Low | Track for trend changes |
| 2% to 5% | Moderate | Segment by channel and product |
| Over 5% | High | Investigate root cause |
| Total | 2% cap | 5% cap | 10% cap |
|---|---|---|---|
| 100 | 2 | 5 | 10 |
| 500 | 10 | 25 | 50 |
| 1,000 | 20 | 50 | 100 |
| 5,000 | 100 | 250 | 500 |
Worked Example and FAQ
Example. You had 18 cancellations out of 450 total transactions last month.
Rate = (18 / 450) * 100 = 4.00%. Completion rate is 96.00%, or about 4 cancellations per 100 transactions.
Should refunds count as cancellations? Only if your business treats them the same way. A clean cancellation rate counts orders voided before fulfillment. Track refunds and chargebacks as separate metrics.
What about pending orders? Exclude them. Include each transaction once it reaches a final state (canceled or completed) within your reporting window.
Why does the target tab round down? To stay at or below your target rate, the allowed count must be a whole number that does not exceed Total times the target. The calculator floors the exact limit so the resulting rate cannot round up past your cap.
