Price volume mix analysis example, step by step
Last reviewed 2026-09-28
To calculate price volume mix, work out each product's share of total units in both periods, then three effects per product: price at actual units, volume at budget mix and budget price, and mix at budget price. Add them up. They must equal the revenue movement exactly; if they do not, something is wrong, and the difference should stay visible.
The example: three products, one month
| Product | Budget units | Budget price | Actual units | Actual price | Budget revenue | Actual revenue |
|---|---|---|---|---|---|---|
| Basic kit | 1,000 | $20.00 | 1,000 | $21.00 | $20,000.00 | $21,000.00 |
| Plus kit | 600 | $35.00 | 1,000 | $33.00 | $21,000.00 | $33,000.00 |
| Pro kit | 400 | $50.00 | 500 | $50.00 | $20,000.00 | $25,000.00 |
| Total | 2,000 | 2,500 | $61,000.00 | $79,000.00 |
Revenue moved +$18,000.00. The question is how much of that came from prices, how much from selling more units, and how much from selling a different blend.
Step 1: mix shares
Each product's units divided by total units, in each period.
- Basic kit: budget 1,000 ÷ 2,000 = 50%; actual 1,000 ÷ 2,500 = 40%
- Plus kit: budget 600 ÷ 2,000 = 30%; actual 1,000 ÷ 2,500 = 40%
- Pro kit: budget 400 ÷ 2,000 = 20%; actual 500 ÷ 2,500 = 20%
Step 2: price effect
(actual price − budget price) × actual units
- Basic kit: ($21.00 − $20.00) × 1,000 = +$1,000.00
- Plus kit: ($33.00 − $35.00) × 1,000 = −$2,000.00
- Pro kit: ($50.00 − $50.00) × 500 = $0.00
Step 3: volume effect
(total actual units − total budget units) × budget mix × budget price.
Total units rose by 500.
- Basic kit: 500 × 50% × $20.00 = +$5,000.00
- Plus kit: 500 × 30% × $35.00 = +$5,250.00
- Pro kit: 500 × 20% × $50.00 = +$5,000.00
Step 4: mix effect
(actual mix − budget mix) × total actual units × budget price
- Basic kit: (40% − 50%) × 2,500 × $20.00 = −$5,000.00
- Plus kit: (40% − 30%) × 2,500 × $35.00 = +$8,750.00
- Pro kit: (20% − 20%) × 2,500 × $50.00 = $0.00
Step 5: add up and check
| Product | Price | Volume | Mix | Total | Revenue change |
|---|---|---|---|---|---|
| Basic kit | +$1,000.00 | +$5,000.00 | −$5,000.00 | +$1,000.00 | +$1,000.00 |
| Plus kit | −$2,000.00 | +$5,250.00 | +$8,750.00 | +$12,000.00 | +$12,000.00 |
| Pro kit | $0.00 | +$5,000.00 | $0.00 | +$5,000.00 | +$5,000.00 |
| Total | −$1,000.00 | +$15,250.00 | +$3,750.00 | +$18,000.00 | +$18,000.00 |
What it says
Selling more units added +$15,250.00. The blend shifted towards the Plus kit, which sells at a higher price than the Basic kit it displaced, adding +$3,750.00. Prices, net, cost −$1,000.00: the Plus kit's cut outweighed the Basic kit's increase. A report that said “revenue up $18,000.00” would be true and would say nothing about the $1,000.00 the price changes gave back.
The same calculation in Excel
With products in rows 5 to 7 and totals in row 8 (B budget units, C budget price, D actual units, E actual price, H budget mix, I actual mix):
- Budget mix:
=B5/$B$8, actual mix:=D5/$D$8 - Price effect:
=(E5-C5)*D5 - Volume effect:
=($D$8-$B$8)*H5*C5 - Mix effect:
=(I5-H5)*$D$8*C5 - Check:
=G5-F5-J5-K5-L5must be 0.00
The free variance analysis template has these formulas ready on its Price Volume Mix tab. For the theory, and the version for gross margin with a cost effect, see the price volume mix explainer and the holiday discount margin example.
Three mistakes to avoid
- Mix as the remainder. Calculating price and volume and calling whatever is left “mix” hides new products, unit errors and rounding inside it. Give mix its own formula and check the total.
- Actual prices in volume or mix. That counts part of the price change twice.
- Units that do not match. A price per case against a quantity in single units still adds up, and is still wrong.
Try Valcenra free
Valcenra runs this split on your own product detail, extends it to gross margin with a separate cost effect, ties it to the ledger movement, and keeps any amount it cannot explain as an open item instead of putting it into mix.
The free workspace is one entity, two users and five stored analysis runs a month, with no card and no sales call.
Common questions
- How do you calculate price volume mix?
- Price effect is (actual price minus budget price) times actual quantity. Volume effect is the change in total quantity times each product's budget mix share times its budget price. Mix effect is the change in mix share times total actual quantity times budget price. In the example they come to −$1,000.00, +$15,250.00 and +$3,750.00, which add up to the +$18,000.00 revenue movement.
- Why use budget prices for volume and mix?
- So the price change is counted once. The price effect already values the price change at actual quantities; valuing volume or mix at actual prices would count part of it again.
- What if a product was only sold in one period?
- It has no price to compare and no mix share to shift. Show its revenue as a separate new-product or discontinued-product line instead of letting it land in mix.
- Can I do this in Excel?
- Yes. The free variance analysis template has a Price Volume Mix tab with these formulas and a check line that must show 0.00.
Illustrative figures. General information, not accounting advice. Last reviewed 2026-09-28.