Take Rate
Formula
Net Revenue ÷ Volume Metric
Definition
Take Rate measures the percentage of underlying volume that a company converts into net revenue.
It is commonly used for marketplaces and payments businesses, where the underlying volume may be measured using Gross Merchandise Value (GMV) or Total Payment Volume (TPV).
Interpretation
A higher Take Rate indicates that the company generates more revenue for each dollar of transaction volume. Changes in Take Rate can reflect pricing, product mix, customer mix, or changes in the services provided alongside the underlying transaction.
Take Rate should be evaluated alongside volume growth and gross margin. A higher Take Rate does not necessarily produce better economics if it reduces transaction activity or is associated with higher costs to serve.
In MetricFrame
MetricFrame calculates Take Rate by dividing Net Revenue by the applicable volume metric. It also calculates Gross Profit Take Rate by dividing Gross Profit by the same volume metric.