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Total Revenue Formula:
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Total Sales Revenue represents the gross income generated from the sale of goods or services before any expenses are deducted. It is the starting point for calculating profitability and business performance metrics.
The calculator uses the fundamental revenue formula:
Where:
Explanation: This formula calculates the total amount of money received from sales before accounting for costs, discounts, or returns.
Details: Accurate revenue calculation is essential for financial planning, performance analysis, investor reporting, and strategic decision-making. It serves as the foundation for calculating net income, profit margins, and growth rates.
Tips: Enter the price per unit in USD (or your local currency) and the quantity sold in whole units. Both values must be positive numbers greater than zero for accurate calculation.
Q1: What is the difference between revenue and profit?
A: Revenue is the total income from sales, while profit is what remains after subtracting all expenses, costs, and taxes from revenue.
Q2: Does revenue include discounts and returns?
A: Gross revenue includes all sales, while net revenue deducts discounts, returns, and allowances. This calculator shows gross revenue.
Q3: How often should revenue be calculated?
A: Revenue should be calculated regularly - daily for operational insights, weekly for performance tracking, and monthly for financial reporting.
Q4: What if I have multiple products with different prices?
A: Calculate revenue for each product separately using this formula, then sum all individual revenues to get total company revenue.
Q5: Is this formula applicable to service businesses?
A: Yes, for service businesses, "price per unit" becomes the price per service, and "quantity sold" becomes the number of services provided.