.gc-calculator-wrapper {
max-width: 650px;
margin: 20px auto;
padding: 30px;
background-color: #f9f9f9;
border: 1px solid #e0e0e0;
border-radius: 8px;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
box-shadow: 0 4px 10px rgba(0,0,0,0.05);
}
.gc-calculator-wrapper h2 {
text-align: center;
margin-top: 0;
color: #333;
font-size: 24px;
margin-bottom: 20px;
}
.gc-input-group {
margin-bottom: 20px;
}
.gc-input-group label {
display: block;
margin-bottom: 8px;
font-weight: 600;
color: #444;
}
.gc-input-group input {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
box-sizing: border-box; /* Ensure padding doesn't affect width */
}
.gc-btn {
display: block;
width: 100%;
padding: 14px;
background-color: #2c7a7b;
color: white;
border: none;
border-radius: 4px;
font-size: 18px;
font-weight: bold;
cursor: pointer;
transition: background-color 0.2s;
}
.gc-btn:hover {
background-color: #234e52;
}
.gc-results {
margin-top: 25px;
padding: 20px;
background-color: #fff;
border: 1px solid #ddd;
border-radius: 4px;
display: none; /* Hidden by default */
}
.gc-result-row {
display: flex;
justify-content: space-between;
margin-bottom: 15px;
padding-bottom: 10px;
border-bottom: 1px solid #eee;
font-size: 16px;
}
.gc-result-row:last-child {
border-bottom: none;
margin-bottom: 0;
padding-bottom: 0;
}
.gc-result-label {
color: #666;
}
.gc-result-value {
font-weight: bold;
color: #222;
}
.gc-highlight {
color: #2c7a7b;
font-size: 20px;
}
.gc-error {
color: #e53e3e;
text-align: center;
margin-top: 10px;
display: none;
}
.gc-article-content {
max-width: 800px;
margin: 40px auto;
font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif;
line-height: 1.6;
color: #333;
}
.gc-article-content h2 {
color: #2c7a7b;
margin-top: 30px;
}
.gc-article-content h3 {
color: #444;
margin-top: 25px;
}
.gc-article-content p {
margin-bottom: 15px;
}
.gc-article-content ul {
margin-bottom: 20px;
padding-left: 20px;
}
.gc-article-content li {
margin-bottom: 8px;
}
.gc-formula-box {
background-color: #edf2f7;
padding: 15px;
border-left: 4px solid #2c7a7b;
font-family: monospace;
font-size: 16px;
margin: 20px 0;
}
function calculateRedemptionRate() {
// Get input values
var issuedInput = document.getElementById("gcTotalIssued").value;
var redeemedInput = document.getElementById("gcTotalRedeemed").value;
var resultsArea = document.getElementById("gcResultsArea");
var errorMsg = document.getElementById("gcErrorMessage");
// Parse values
var issued = parseFloat(issuedInput);
var redeemed = parseFloat(redeemedInput);
// Validation
if (isNaN(issued) || isNaN(redeemed) || issued <= 0 || redeemed issued) {
errorMsg.style.display = "block";
errorMsg.innerText = "Error: Redeemed value cannot be higher than the total issued value.";
resultsArea.style.display = "none";
return;
}
// Hide error if previously shown
errorMsg.style.display = "none";
// Calculations
var redemptionRate = (redeemed / issued) * 100;
var breakageRate = 100 – redemptionRate;
var unredeemedValue = issued – redeemed;
// Display Results
document.getElementById("gcDisplayRate").innerText = redemptionRate.toFixed(2) + "%";
document.getElementById("gcDisplayBreakage").innerText = breakageRate.toFixed(2) + "%";
document.getElementById("gcDisplayUnredeemed").innerText = "$" + unredeemedValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
// Show results area
resultsArea.style.display = "block";
}
How to Calculate Gift Card Redemption Rate
For retailers, restaurants, and service providers, gift cards are a powerful tool for driving revenue and acquiring new customers. However, simply selling the cards is only half the battle. To understand the true financial impact of your gift card program, you must track the Redemption Rate.
This metric tells you what percentage of the gift card value you have issued has actually been used by customers. High redemption rates generally indicate strong customer engagement, while low redemption rates result in "breakage"—revenue recognized from unredeemed cards, often subject to specific accounting and escheatment laws.
The Formula
Calculating your gift card redemption rate is a straightforward mathematical process. It involves comparing the total value of gift cards redeemed against the total value of gift cards issued over a specific period.
Redemption Rate = (Total Value Redeemed ÷ Total Value Issued) × 100
Conversely, you can calculate the Breakage Rate (the percentage of value that goes unused) using this formula:
Breakage Rate = 100% – Redemption Rate
Example Calculation
Let's say a local coffee shop ran a holiday promotion and sold gift cards totaling $10,000 in December. By the end of March, their system shows that customers have used (redeemed) $8,500 worth of those specific cards.
- Total Issued: $10,000
- Total Redeemed: $8,500
Using the calculator above or the formula:
($8,500 ÷ $10,000) = 0.85
0.85 × 100 = 85% Redemption Rate
This means 15% of the value (or $1,500) remains unredeemed liability for the coffee shop.
Why Tracking Redemption Matters
Understanding this rate is critical for three main reasons:
- Financial Liability: Unredeemed gift cards are a liability on your balance sheet. You owe those services or goods to the customer until the card is used or expires (if applicable laws allow expiry).
- Marketing Effectiveness: If you give away gift cards as a promotional tool but have a 5% redemption rate, your campaign isn't driving foot traffic. A higher rate means customers are visiting your store, where they often spend more than the card's value (known as "uplift").
- Cash Flow Management: While you receive the cash upfront when selling the card, the cost of goods sold (COGS) isn't incurred until redemption. Accurate tracking ensures you have the inventory and staff to handle the influx when redemptions peak.
What is a "Good" Redemption Rate?
Redemption rates vary by industry and brand strength. Generally, a redemption rate between 70% and 85% within the first six months is standard. Rates approaching 100% are rare due to lost cards, forgetfulness, or small leftover balances that customers abandon. The unredeemed portion is known as "spillage" or "breakage," which, depending on your local laws, may eventually be recognized as pure profit.