Price Volume Mix Math | Super Simple BI

Price Volume Formula

Last Year's Price = $10 per Unit

Last Year's Volume = 50 Units

This Year's Price = $12 per Unit

This Year's Volume = 57 Units

Change in Price = $12 - $10 = $2

Change in Volume = 57 - 50 = 7 units

Last Year's Revenue = $10 x 50 units = $500

This Year's Revenue = $12 x 57 units = $684

Price Impact = Change in Price x Original Volume

Volume Impact = Original Price x Change in Volume

Mix Impact = Change in Price x Change in Volume

Price Impact = $2 x 50 units = $100

Volume Impact = $10 x 7 units = $70

Mix Impact = $2 x 7 Units = $14

Total Change between years = 100 + 70 + 14 = $184

See below for a graphic of the results

In the example above, "Mix" is $14. What should be done with this number?

It depends on the story you wish to tell and what your audience expects.

One option is to report the number as the "Mix" impact.

Another option is to add $70 + $14 = $84 as the total "Volume & Mix" impact, and report this alongside the "Price" impact of $100.

One possibility is to halve the $14 and add to both Price and Volume. Now the "Price" impact = 100 + 7 = $107 and "Volume" impact = 70 + 7 = $77.

There are no hard rules, and there is no agreement in the business community about what to do.

At Supersimplebi.com you can copy and paste multiple rows of data straight into your browser and we'll do the math.

This will calculate the Price, Volume, and Mix impacts across every segment that you have.

For large scale input, use our Pro Analysis.

For limited analysis, use our Free Option.