Customer & Market Segment Profitability Analysis Calculator in Excel

Not all customers or market segments are created equal. Some deliver strong profits, while others drain resources, despite big sales numbers. Segmenting by profitability is one of the options to underpin your marketing strategy and investment decisions.

Why It Matters

• Reveals your most valuable customers and market segments.
• Prevents over-investing in low-margin accounts.
• Supports more intelligent pricing and service-level decisions.

The Math in Plain English

Profitability = Revenue – (Direct Costs + Allocated Overheads)

• Revenue = sales from the customer or segment
• Direct Costs = product/service costs, discounts, returns
• Overheads = account management, logistics, support

Quick Example

• Customer A: $120,000 sales – $80,000 costs = $40,000 profit (33%)
• Customer B: $100,000 sales – $95,000 costs = $5,000 profit (5%)

Which customer would you prioritize?

Quick Calculation

Our Customer & Market Segment Profitability Template helps you identify your profit drivers instantly — no need to build complex allocation models, our template can be used “out of the box”.

Available as an separate product or in our Marketing Math Collection.

Bottom Line

Profitability analysis turns guesswork into clarity.

Marketing Math Collection

This product is included in our Marketing Math Collection.

Sales and marketing math and analytics help to unlock commercially relevant insights, measure profitability and return on investment underpinning different marketing strategies, as a result increasing revenue and profitability, and improving brand perception. With the help of the right analytics, you can uncover new market niches, new product development opportunities and much more.
At the Business Tools Store, we have created a marketing math collection. We continue to expand the collection. If you feel there is any addition that would enhance the collection, we would be delighted to hear from you. Once developed we will give you a complimentary copy.