The Average Selling Price (ASP) is the average price that a customer pays to buy a specific product or service. If a company sells its product at different prices to customers each year, it can use the ASP metric. ASP calculation involves estimating the total revenue earned from product sales and then dividing this number by the quantity sold.
ASP is calculated as Total revenue earned / total number of units sold. Suppose a company sells a few software products in one week. Each of the software was priced differently at $300, $500, $1,000, and $1,500. Thus, the total revenue earned is $3,300, and the total number of products sold is 4. ASP = 3,300 ÷ 4.= $825.