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How to calculate product revenue by category

Ronny Christensen avatar
Written by Ronny Christensen
Updated this week

📌 Method: MonthlyProductRevenuePerCategory

This article explains how we calculate monthly product revenue broken down by category.


How is product revenue calculated by category?

  1. Download all purchased products during the period

    • We filter orders based on product category.

  2. Calculate revenue by category

    • We sum up all sales in each category.

  3. Group by segment

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

  4. Visualize data

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


Example calculation

We calculate the product turnover for January by category.

Category

Units sold

Average price

Total Revenue

Clothing

100

300 kr.

30.000 kr.

Equipment

50

500 kr.

25.000 kr.

  1. Calculate revenue for clothing:

    100×300=30.000 kr.100 \times 300 = 30.000 \text{ kr.}100×300=30,000 kr.

  2. 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 broken down by category.

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