Product & Customer Profitability Calculator
Analyse the profitability of a product, product category, or customer. Calculate net revenue, gross profit, contribution, operating profit, and profit margins to understand which products or customers generate the strongest financial returns.
1. Sales Information
For customer analysis, enter the quantity sold to that customer during the selected period.
Enter the total discount amount for the entire quantity, not the discount per unit.
2. Product and Service Costs
For a service, enter the direct delivery cost per unit of service. Avoid including costs already entered elsewhere.
Include additional variable selling, delivery, commission, or servicing costs not already included in cost of goods sold.
3. Allocated Fixed Costs
Enter the fixed costs allocated to this product or customer for the same period.
Formulas Used
Gross Sales = Units Sold × Selling Price per Unit
Net Revenue = Gross Sales − Discounts / Allowances
Cost of Goods Sold = Units Sold × Cost of Goods Sold per Unit
Gross Profit = Net Revenue − Cost of Goods Sold
Total Variable Costs = Cost of Goods Sold + Other Variable Costs
Contribution = Net Revenue − Total Variable Costs
Operating Profit / Loss = Contribution − Allocated Fixed Costs
Gross Profit Margin = Gross Profit ÷ Net Revenue × 100
Contribution Margin = Contribution ÷ Net Revenue × 100
Operating Profit Margin = Operating Profit ÷ Net Revenue × 100
Operating Profit per Unit = Operating Profit ÷ Units Sold
Margins are displayed as N/A if net revenue is zero.
Practical Example
Analysis: Product
Units Sold: 1,000
Selling Price per Unit: ₹500
Total Discounts: ₹10,000
Cost of Goods Sold per Unit: ₹250
Other Variable Cost per Unit: ₹30
Allocated Fixed Costs: ₹50,000
Gross Sales: 1,000 × ₹500 = ₹500,000
Net Revenue: ₹500,000 − ₹10,000 = ₹490,000
Cost of Goods Sold: 1,000 × ₹250 = ₹250,000
Gross Profit: ₹490,000 − ₹250,000 = ₹240,000
Other Variable Costs: 1,000 × ₹30 = ₹30,000
Contribution: ₹490,000 − ₹250,000 − ₹30,000 = ₹210,000
Operating Profit: ₹210,000 − ₹50,000 = ₹160,000
Gross Profit Margin: ₹240,000 ÷ ₹490,000 × 100 = 48.98%
Contribution Margin: ₹210,000 ÷ ₹490,000 × 100 = 42.86%
Operating Profit Margin: ₹160,000 ÷ ₹490,000 × 100 = 32.65%
Operating Profit per Unit: ₹160,000 ÷ 1,000 = ₹160
How to Use
- Select Product, Customer, or Product Category.
- Enter a name if you want to identify the analysis.
- Select the currency.
- Enter units sold, selling price, and total discounts.
- Enter cost of goods sold per unit and other variable cost per unit.
- Enter allocated fixed costs for the same period.
- Select Calculate to view profitability results.
- Select Reset to clear all fields and results.