What is the formula of patronage refund?

The formula for a patronage refund typically involves calculating the net earnings of a cooperative and then distributing a portion of those earnings back to members based on their level of participation or patronage. The basic formula can be expressed as:

Patronage Refund = (Member's Patronage / Total Patronage) × Total Refund Pool.

This ensures that members receive refunds proportional to their contributions or transactions with the cooperative.