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How Product Revenue Is Calculated

Ronny Christensen avatar
Written by Ronny Christensen
Updated over a month ago

📌 Method: MonthlyProductRevenue

This article explains how we calculate the monthly revenue from product sales.

How is product revenue calculated?

Find all purchased products in the period

  • We retrieve all orders from the database.

Filter by segment

  • Data can be divided by gender, age, or product category.

Calculate total revenue per month

  • We sum all product sales.

Visualize data

  • Data is displayed in an area chart showing monthly product revenue.

Example Calculation

We calculate product revenue for January and February.

Month

Sold Products

Average Price

Total Revenue

January

150

200 kr.

30,000 kr.

February

180

220 kr.

39,600 kr.

Calculate revenue for February:

180×220=39,600 kr.180 \times 220 = 39,600 \text{ kr.}180×220=39,600 kr.

Calculate average product revenue per month:

30,000+39,6002=34,800 kr.\frac{30,000 + 39,600}{2} = 34,800 \text{ kr.}230,000+39,600​=34,800 kr.

Why is this important?

✔ Understand which products sell best
✔ Identify trends and seasonal variations
✔ Optimize inventory based on demand

💡 Result: A graph showing product revenue per month.

Have any questions? Contact us via Intercom chat! 😊

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