Our profit increase calculator is a simple spreadsheet that makes it easy to see how minor improvements can translate into increased profits.
Download the 'profit increase calculator (Excel, 53 KB)' and open it in Microsoft Excel or another spreadsheet application.
Enter your name in the ‘Prepared By’ field. The date is automatically set to today.
Look at the example on the left to get a better sense of the calculator's purpose and outcome.
Enter your existing sales figures into the ‘Current Performance’ column. This includes the number of potential customers, your existing conversion rate, number of transactions per customer, average value of each sale, and net profit percentage.
Next, enter your improvement factor for each of the following:
- Number of potential customers
- Conversion rate
- Number of transactions per customer
- Average value of each sale
- Net profit percentage.
Experiment with different improvement factors to see their potential improvement on your profit. To isolate one improvement factor at a time, enter '0' in the other improvement factors. Consider using the profit increase calculator in conjunction with your marketing plan to ensure that your marketing investments make the most sense. Will they:
- Increase the number of potential customers?
- Improve conversions, and thus the number of actual paying customers?
- Help increase the number of transactions per customer?
- Increase the average value of each sale?
- Help boost your net profit?