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Gift Card Breakage Calculator

Calculate gift card breakage revenue, % of card value never redeemed, recognised as income.

Retail D2C
Estimated breakage revenue
$20,000
8.0% breakage rate
Total face value issued
$250,000
Breakage is the % of gift card value never redeemed. Under GAAP/IFRS 15, it can be recognised as revenue using the proportional method. Average industry breakage runs 5-12%.

About this tool

Industry-average gift card breakage is 5-10%. Calculator shows expected breakage income on issued cards based on your historical redemption rate.

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