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How Product Revenue Per Category Is Calculated

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

📌 Method: MonthlyProductRevenuePerCategory

This article explains how we calculate the monthly product revenue divided by category.

How is product revenue per category calculated?

Retrieve all purchased products in the period

  • We filter orders based on product category.

Calculate revenue per category

  • We sum all sales in each category.

Group by segment

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

Visualize data

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

Example Calculation

We calculate product revenue for January divided by categories.

Category

Units Sold

Average Price

Total Revenue

Clothing

100

300 kr.

30,000 kr.

Equipment

50

500 kr.

25,000 kr.

Calculate revenue for clothing:

100×300=30,000 kr.100 \times 300 = 30,000 \text{ kr.}100×300=30,000 kr.

Calculate revenue for equipment:

50×500=25,000 kr.50 \times 500 = 25,000 \text{ kr.}50×500=25,000 kr.

Why is this important?

✔ Understand which product categories generate the most revenue
✔ Optimize purchasing and inventory management
✔ Target marketing campaigns

💡 Result: A graph showing product revenue divided by category.

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