How to Calculate Cancellation Rate in Excel

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Cancellation Rate Calculator

Results

Cancellation Rate

0%

Fulfilled Orders

0

function calculateCancellationRate() { var total = parseFloat(document.getElementById('totalBookings').value); var canceled = parseFloat(document.getElementById('canceledBookings').value); var resultArea = document.getElementById('resultArea'); var rateOutput = document.getElementById('rateOutput'); var fulfilledOutput = document.getElementById('fulfilledOutput'); if (isNaN(total) || isNaN(canceled) || total total) { alert("Cancellations cannot be greater than total bookings."); return; } var rate = (canceled / total) * 100; var fulfilled = total – canceled; rateOutput.innerText = rate.toFixed(2) + "%"; fulfilledOutput.innerText = fulfilled.toLocaleString(); resultArea.style.display = 'block'; }

How to Calculate Cancellation Rate in Excel: A Step-by-Step Guide

In business analytics, particularly within the hospitality, e-commerce, and service industries, the cancellation rate is a vital Key Performance Indicator (KPI). It measures the percentage of total bookings or orders that were canceled before completion. Understanding this metric helps businesses identify operational friction, customer dissatisfaction, or revenue leakage.

The Cancellation Rate Formula

Before jumping into Excel, it is important to understand the underlying math. The formula for the cancellation rate is:

Cancellation Rate = (Number of Cancellations / Total Bookings) × 100

Calculating Cancellation Rate in Excel

Excel makes it incredibly easy to track this metric over time. Here is the step-by-step process to set up your spreadsheet:

  1. Organize Your Data: Create three columns: Date (A), Total Orders (B), and Cancellations (C).
  2. Input Your Numbers: Enter your data into rows 2, 3, 4, and so on.
  3. Apply the Formula: In cell D2, type the following formula: =C2/B2.
  4. Format as Percentage: Select cell D2 and click the % icon in the "Home" tab of the Excel ribbon. This automatically multiplies the result by 100 and adds the percentage symbol.
  5. Handle Errors: To avoid #DIV/0! errors when a cell is empty, use: =IFERROR(C2/B2, 0).

Real-World Example

Imagine you run a boutique hotel. Last month, you had the following data:

  • Total Bookings: 1,200
  • Cancellations: 144

Using the formula in Excel:

=144 / 1200 = 0.12

When formatted as a percentage, your Cancellation Rate is 12%.

Why Monitor Your Cancellation Rate?

Tracking this metric is not just about numbers; it's about business health. High cancellation rates often indicate:

  • Marketing Misalignment: You are attracting the wrong type of customer.
  • Pricing Strategy: Customers might find better deals after booking and switch.
  • Technical Friction: If a booking process is confusing, users may cancel to start over or give up entirely.

By using the calculator above and maintaining an Excel log, you can spot trends (like seasonal spikes) and take proactive measures to stabilize your revenue.

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