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How to calculate product revenue

Ronny Christensen avatar
Written by Ronny Christensen
Updated over 3 weeks ago

📌 Method: MonthlyProductRevenue

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


How is product revenue calculated?

  1. Find all products purchased in the period

    • We retrieve all orders from the database.

  2. Filter by segment

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

  3. Calculate total revenue per month

    • We sum up all product sales.

  4. Visualize data

    • Data is displayed in a range chart that shows monthly product revenue.


Example calculation

We calculate product revenue for January and February.

Month

Products sold

Average price

Total Revenue

January

150

200 kr.

30.000 kr.

February

180

220 kr.

39.600 kr.

  1. Calculate revenue for February:

    180×220=39.600 kr.180 \times 220 = 39.600 \text{ kr.}180×220=39,600 kr.

  2. 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 are selling best
Identify trends and seasonality
Optimize inventory based on demand

💡 Result: A graph showing the product revenue per month.

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