# Loyalty points calculation

When you activate the loyalty rule, members of the rewards program will earn points for each purchase. Points are calculated based on the order subtotal amount. This represents the value of the order after all discount codes have been applied. It is exclusive of taxes and shipping costs that are applied at checkout. However, it is important to note that taxes included in the product's price will not be deducted. Therefore the following statements are correct:

* Customers do not earn points for shipping costs. Shipping costs do not affect how many points customers earn for a purchase.&#x20;
* Discounts applied at checkout decrease the amount of points customers earn for a purchase.
* Taxes applied at checkout do not affect how many points customers earn for a purchase.
* Taxes included in the product price increase the amount of points customers earn for a purchase.

#### Example

A customer has a cart value of $90. They redeem a $15 coupon code at checkout and are charged $30 in taxes and $20 in shipping costs. This customer will only earn points for $90 - $15 = $75.&#x20;


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