Free tool
Gift card program ROI calculator
The return on a gift card program comes from three effects that stack: cash collected before delivery, redemption tickets that run above the card's face value, and value that is never redeemed at all. The estimator below applies published industry averages to your numbers — it is an estimate, not a projection.
Estimated annual gift card revenue
$96,624
Card value issued plus the additional spend customers make above their card balance.
- Card value issued
- $72,000
- Redeemed value
- $64,800
- Overspend above card value
- $24,624
- Estimated breakage
- $7,200
Cash collected up front across the year.
Value expected to come back through the door.
Incremental revenue on redemption tickets.
Value unlikely to be redeemed, subject to ASC 606 and state law.
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Methodology. Uplift defaults to 38%, the figure Blackhawk Network reports for the 65% of consumers who overspend their card value. Breakage defaults to 10%, the widely cited share of gift card value that goes unredeemed. Your business will differ; adjust the inputs. No figure here is a guarantee, and breakage recognition is subject to ASC 606 and your state's escheatment law.
How the estimate is calculated
The model multiplies your monthly card count by the average denomination to get annual value issued. Breakage is removed to find the value expected to be redeemed, and the overspend rate is applied to that redeemed value to estimate additional revenue on redemption tickets. Total annual value is issued value plus overspend.
- Value issued = cards per month x average card value x 12.
- Breakage = value issued x breakage rate.
- Redeemed value = value issued minus breakage.
- Overspend = redeemed value x overspend rate.
- Total annual value = value issued plus overspend.
Uplift defaults to 38%, the figure Blackhawk Network reports for the 65% of consumers who overspend their card value. Breakage defaults to 10%, the widely cited share of gift card value that goes unredeemed. Your business will differ; adjust the inputs. No figure here is a guarantee, and breakage recognition is subject to ASC 606 and your state's escheatment law.
Turn the estimate into a quote
The calculator uses industry averages. A quote uses your POS, your locations and your card format — and it takes one conversation.