Your numbers
Explore the numbers
Examples, chart, and saved snapshots
Start with a realistic example, adjust the inputs, or save your numbers before experimenting.
Ten percent of a 50,000 unredeemed balance
Outstanding gift cards total 50,000. You type a breakage share of 10 percent. That 10 percent is an example. The standard does not publish a rate. Paragraph 55-48 recognizes breakage as people redeem, or when redemption becomes remote.
Unredeemed balance: 25% lower
Change unredeemed balance to 37,500 while keeping the other example values the same.
Unredeemed balance: 25% higher
Change unredeemed balance to 62,500 while keeping the other example values the same.
Interactive chart
See what changes the result
This result is categorical, so compare the calculated values in the examples and snapshots instead.
The chart changes one input while holding all other current values steady. It is a sensitivity view, not a forecast.
Browser snapshots
Freeze these values
Save the current calculation, experiment freely, and restore it later.
No saved snapshots for this calculator yet.
Compare snapshots
What changed?
Save one more snapshot to compare plans.
Saved only in this browser. Nothing is uploaded, and clearing browser data removes the snapshots.
Quick answer
What does the Gift card breakage calculate?
How much of this gift-card balance is breakage? This calculator uses unredeemed balance, and breakage share to estimate the share of the balance you expect to keep immediately in your browser.
With the values currently entered, the result is $5,000.00 — of the unredeemed balance. It also shows expected to be redeemed, breakage share, and unredeemed balance.
How to use the Gift card breakage
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Unredeemed balance
- Breakage share — entered in %
Gift card breakage formula
Breakage = unredeemed balance × breakage share. Expected redemption = unredeemed balance − breakage.
Assumptions
- ASU 2014-09, paragraph 606-10-55-47, calls rights a customer never exercises breakage. Paragraph 55-48 recognizes the expected breakage as revenue in proportion to redemptions, or when redemption becomes remote. This page multiplies the unredeemed balance by the share you type. It does not spread that amount across redemptions you already recorded. The 10 percent in the box is an example share, and the standard does not publish a rate.
- Paragraph 606-10-55-49 keeps a liability, and blocks breakage revenue, when you must remit the unused amount under unclaimed-property law. Put 0 in the share box for that part of the balance. California Civil Code 1749.5, operative April 1, 2026, makes it unlawful to sell a gift certificate with an expiration date, and a certificate for less than 15 dollars is redeemable in cash. That statute is California law.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Paragraphs 606-10-55-46 through 55-49 call unexercised rights breakage. Expected breakage is recognized as revenue in proportion to redemptions, or when redemption becomes remote. An amount you must remit under unclaimed-property law stays a liability. This page multiplies the unredeemed balance by the share you type.
Civil Code § 1749.5, gift certificatesCalifornia LegislatureScope: Gift certificates sold in California; operative April 1, 2026Makes it unlawful to sell a gift certificate with an expiration date or, with narrow exceptions, a service fee. A certificate with a cash value of less than $15 is redeemable in cash. A certificate sold without an expiration date is valid until redeemed or replaced.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Gift card breakage example and edge cases
Gift card breakage is the part of an unredeemed balance you expect holders never to redeem. ASU 2014-09, paragraphs 606-10-55-46 through 55-49, names that remainder breakage and tells you when it can become revenue. This page multiplies the balance by a share you type.
Example: Ten percent of a 50,000 unredeemed balance
Outstanding gift cards total 50,000. You type a breakage share of 10 percent. That 10 percent is an example. The standard does not publish a rate. Paragraph 55-48 recognizes breakage as people redeem, or when redemption becomes remote.
- Unredeemed balance
- 50,000
- Breakage share
- 10 %
Calculated result$5,000.00of the unredeemed balance
Ten percent of 50,000 is 5,000. That is the breakage in this balance. The other 45,000 is the part you still expect holders to redeem. The page does not spread the 5,000 across redemptions you already recorded.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the 5,000 first. It is the unredeemed balance times the share in the box. The other line, 45,000, is the balance minus that share. Change the 10 and both lines move.
- Paragraph 606-10-55-49 keeps a liability when unclaimed-property law requires you to remit the unused amount. California Civil Code 1749.5, operative April 1, 2026, bars an expiration date on a gift certificate you sell, and a certificate for less than 15 dollars is redeemable in cash. That rule is California.
Edge cases worth checking
The state takes the unused balance
Paragraph 55-49 says an amount you must turn over to a government stays a liability. Put 0 in the share box for that part of the balance, or pull it out of the balance before you apply a share to the rest.
A promotional certificate the consumer did not pay for
Civil Code 1749.5(e)(1) allows an expiration date on a gift certificate you distribute under a loyalty or promotional program when the consumer paid nothing for it, if the date is printed in capital letters on the front. A card you sold stays under the expiration ban in subdivision (a).
What changes the result most
Unredeemed balance
Use a current amount for unredeemed balance. Include fees or recurring costs that belong in the same figure.
Breakage share
Test a lower and higher breakage share. A small percentage change can move the final result more than expected.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Unredeemed balance: 25% lower
37,500$3,750.00of the unredeemed balance
Unredeemed balance: 25% higher
62,500$6,250.00of the unredeemed balance
Breakage share: 25% higher
13 %$6,500.00of the unredeemed balance
Common mistakes
Check unredeemed balance
ASU 2014-09, paragraph 606-10-55-47, calls rights a customer never exercises breakage. Paragraph 55-48 recognizes the expected breakage as revenue in proportion to redemptions, or when redemption becomes remote. This page multiplies the unredeemed balance by the share you type. It does not spread that amount across redemptions you already recorded. The 10 percent in the box is an example share, and the standard does not publish a rate. Make sure this matches the number you enter.
Keep breakage share consistent
Paragraph 606-10-55-49 keeps a liability, and blocks breakage revenue, when you must remit the unused amount under unclaimed-property law. Put 0 in the share box for that part of the balance. California Civil Code 1749.5, operative April 1, 2026, makes it unlawful to sell a gift certificate with an expiration date, and a certificate for less than 15 dollars is redeemable in cash. That statute is California law. Use the same units and time period throughout the calculation.
Do not rely on one gift card breakage scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
How much of this gift-card balance is breakage?
It does not replace a quote, contract, accountant, or local employment guidance.