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Your few big products. Check stock cover so they do not run out, and check the margin: a big seller with a thin margin earns less than its rank suggests.
Free calculator
ABC analysis calculator
Paste your products with revenue, and cost if you have it. The calculator ranks them, shows which products are A, B and C, and how the classes change when you rank by profit instead of revenue.
Your classes
Class A holds 3 of 10 products (30%) and 80% of your revenue.
| Class | Products | Share of products | Share of revenue |
|---|---|---|---|
| A | 3 | 30% | 80% |
| B | 3 | 30% | 15% |
| C | 4 | 40% | 5% |
Illustrative data
| Rank | Product | Revenue | Share | Cumulative | Class |
|---|---|---|---|---|---|
| 1 | P1 | 40,000 | 40.0% | 40.0% | A |
| 2 | P2 | 25,000 | 25.0% | 65.0% | A |
| 3 | P3 | 15,000 | 15.0% | 80.0% | A |
| 4 | P4 | 6,000 | 6.0% | 86.0% | B |
| 5 | P5 | 5,000 | 5.0% | 91.0% | B |
| 6 | P6 | 4,000 | 4.0% | 95.0% | B |
| 7 | P7 | 2,000 | 2.0% | 97.0% | C |
| 8 | P8 | 1,500 | 1.5% | 98.5% | C |
| 9 | P9 | 1,000 | 1.0% | 99.5% | C |
| 10 | P10 | 500 | 0.5% | 100.0% | C |
How it works
ABC analysis ranks products by one number and cuts the list where the running total passes 80% and 95%.
Sort your products from the highest value to the lowest. Work out each product's share of the total and add the shares up as you go down the list. Products up to 80% of the running total are A, up to 95% are B, and the rest are C.
The 80/95 split follows the Pareto principle and is a convention. Change the limits in the calculator if your range calls for different ones.
How the calculator treats your data
- Ties
- Products with the same value keep the order you pasted them in.
- The top product
- It is always A, even when it alone carries more than 80%.
- Zero
- A product with zero revenue or profit is ranked last and is C.
- Negative or missing values
- Left out of the ranking and counted under the results. When you rank by profit, products without a cost are left out too.
Worked example: ten products, €100,000.00 revenue
| Rank | Product | Revenue | Cumulative | Class |
|---|---|---|---|---|
| 1 | P1 | €40,000.00 | 40.0% | A |
| 2 | P2 | €25,000.00 | 65.0% | A |
| 3 | P3 | €15,000.00 | 80.0% | A |
| 4 | P4 | €6,000.00 | 86.0% | B |
| 5 | P5 | €5,000.00 | 91.0% | B |
| 6 | P6 | €4,000.00 | 95.0% | B |
| 7 | P7 | €2,000.00 | 97.0% | C |
| 8 | P8 | €1,500.00 | 98.5% | C |
| 9 | P9 | €1,000.00 | 99.5% | C |
| 10 | P10 | €500.00 | 100.0% | C |
A is 3 of 10 products (30%) and 80% of revenue. B is 3 products and 15%. C is 4 products (40%) and 5%.
Illustrative data
Revenue or profit
Rank by profit and the A list changes.
Revenue shows what sells; profit shows what earns. The same ten products, with margins of 10%, 20%, 40%, 50%, 40%, 30%, 40%, 30%, 20%, 10%, make a profit of €4,000.00, €5,000.00, €6,000.00, €3,000.00, €2,000.00, €1,200.00, €800.00, €450.00, €200.00, €50.00: €22,700.00 in total.
| Rank by profit | Product | Profit | Cumulative | Class | By revenue |
|---|---|---|---|---|---|
| 1 | P3 | €6,000.00 | 26.4% | A | A |
| 2 | P2 | €5,000.00 | 48.5% | A | A |
| 3 | P1 | €4,000.00 | 66.1% | A | A |
| 4 | P4 | €3,000.00 | 79.3% | A | B |
| 5 | P5 | €2,000.00 | 88.1% | B | B |
| 6 | P6 | €1,200.00 | 93.4% | B | B |
| 7 | P7 | €800.00 | 96.9% | C | C |
| 8 | P8 | €450.00 | 98.9% | C | C |
| 9 | P9 | €200.00 | 99.8% | C | C |
| 10 | P10 | €50.00 | 100.0% | C | C |
P1 is the biggest product by revenue but earns the thinnest margin of the A group, and P4 is B by revenue but A by profit.
Illustrative data
Next steps
What to ask about each class before you change anything.
B products
The middle. Watch them: a B product can grow into A, and ranking by profit shows which ones already earn like one.
C products
The long tail. Ask why each one sits there: little demand, too much stock, a weak margin, or ad spend that does not come back.
ABC and XYZ analysis measure different things.
ABC groups products by how much they carry. XYZ groups them by how steady their demand is: X sells evenly, Y varies with trends or seasons, and Z is hard to predict. Combined, AX products are big and predictable, and CZ products are small and erratic. This calculator does the ABC part.
Questions about ABC analysis.
What is ABC analysis?
ABC analysis ranks products by one number, usually revenue or profit, and groups them into A (the few that carry most of it), B and C (the many that carry little). With the usual limits, A products make up 80% of the total, B the next 15% and C the last 5%.
How do you do an ABC analysis in Excel?
Put product names in column A and values in column B, and sort by column B from largest to smallest. In C2 enter =SUM($B$2:B2)/SUM($B$2:$B$11) and fill it down: that is the cumulative share. In D2 enter =IF(C2<=0.8,"A",IF(C2<=0.95,"B","C")) and fill it down. Change $B$11 to your last row. Or paste the columns into the calculator above.
Should I rank by revenue or profit?
Rank by profit when you know the cost. Revenue rewards products that sell a lot at a thin margin; profit shows which products actually earn. In the example above, P4 moves from B to A when ranked by profit.
What is ABC XYZ analysis?
It combines ABC (share of value) with XYZ (how steady demand is) into nine groups, from AX to CZ. AX products matter most and are easy to plan; CZ products are small and hard to predict.
Does my data leave my browser?
No. The calculator reads the pasted text or CSV file in your browser and sends none of it to a server. Reload the page and it is gone.
ABC uses one number. Product Segmentation uses two.
ABC ranks products by a single number. Product Segmentation segments them by volume and return, six segments from Stars to Ghosts.
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