BlocklyChargeback ratio calculator
Enter this month's transactions and chargebacks to see your chargeback ratio — by count, which card networks watch, and optionally by value.
Below ~0.65%, generally considered a healthy operating zone across most verticals.
- At 2,000 transactions, ~0.9% is 18 chargebacks a month.
How the chargeback ratio is calculated
Chargeback ratio = chargebacks ÷ transactions × 100, measured over the same period — usually one calendar month. If you processed 2,000 orders and received 8 chargebacks, your ratio is 0.4%.
The value-based version divides the dollar value of chargebacks by the dollar value of sales. It can look very different from the count-based ratio when a few large orders are disputed, so always state which one you are quoting.
What the result means
- Below ~0.65% — generally a healthy operating zone.
- ~0.65% to ~0.9% — watch closely; you are approaching monitoring thresholds.
- ~0.9% to 1% and above — the danger zone where monitoring programs, fines and remediation often begin.
These are rough zones. Card networks set and change their own programs, so check the current figures with your payment provider.
Frequently asked questions
How do you calculate a chargeback ratio?
Divide the number of chargebacks in a period by the number of transactions in the same period, then multiply by 100. For example, 8 chargebacks on 2,000 transactions is a 0.4% chargeback ratio.
What is a good chargeback ratio?
Below about 0.65% is generally considered healthy across most verticals. Around 0.9–1% is the danger zone where card-network monitoring programs often begin. Exact thresholds vary by network, so confirm them with your payment provider.
Should I measure chargebacks by count or by value?
Card networks generally look at the count-based ratio, usually monthly. The value-based ratio is still useful for understanding financial exposure, especially when a few high-value orders dominate.
What happens if my chargeback ratio is too high?
You can be placed in a card-network monitoring program, with fines, mandatory remediation plans and, if the ratio stays high, the risk of losing the ability to process cards.
How can I lower my chargeback ratio on Shopify?
Stop fraudulent orders before they are placed (block high-risk IPs, VPNs, Tor and card-testing bots), keep tracking and delivery evidence, describe products accurately and make refunds easy so customers ask you before their bank.
Lower the number, not just measure it
Blockly Fraud Filter blocks risky IPs, VPNs, bots and fraud orders before they turn into chargebacks. Free plan available.