Methodology / Glossary / Absorption Rate

Absorption Rate

The number of units sold per month, which determines the sales timeline and cash inflow schedule. A higher absorption rate means faster sales and earlier revenue, reducing finance costs.

Why it matters

Slower sales mean longer loan duration and higher interest costs. This is often the biggest risk factor in a project.

In Profivo

Set in the Revenue tab and used to generate the monthly sales schedule in cash flow.

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