Revenue Calculator
Work out total revenue from the price per unit and the number of units sold. Reverse-solve for price, quantity, or revenue when one is missing, subtract returns to see net revenue, and switch on the cost estimate to turn the top line into gross profit and margin.
Formula
Worked example
Selling 400 units at $25 each gives gross revenue of 25 x 400 = $10,000. If 20 units are returned, returns are worth 25 x 20 = $500, so net revenue is $9,500. With a $14 unit cost on 380 net units, total cost is $5,320, leaving $4,180 of gross profit, a 44% margin.
What total revenue means
Total revenue is the full amount a business takes in from selling its product, found by multiplying the price per unit by the quantity sold. Economists write it as TR = P x Q. It sits at the very top of the income statement, which is why it is often called the "top line." Revenue measures sales, not earnings, it says nothing about the costs incurred to generate those sales.
Reverse-solving for price or quantity
The same TR = P x Q identity rearranges three ways, so this calculator works in any direction. Choose "Solve for" to set your unknown. If you have a revenue target and a unit price, divide to find the units you must sell. If you know the units and the revenue you booked, divide to recover the realized unit price. This is how you turn a sales goal into a concrete quantity, or audit an invoice when only the total and the count are recorded.
Gross revenue, net revenue and average revenue
Gross revenue is the raw price-times-quantity figure before any adjustments. Net revenue subtracts returns, refunds, and allowances to reflect the money the business actually keeps from completed sales. Average revenue is net revenue divided by net units, the realized price per unit after returns. In a competitive market average revenue equals the list price, but discounts and returns pull it below, so a falling average revenue is an early warning that headline sales are healthier than the cash.
Turning revenue into profit
Revenue is only the inflow from sales; profit is what remains after costs. Switch on the cost estimate and enter a cost per unit (your cost of goods sold) plus any fixed costs for the period. The calculator charges the unit cost on net units sold, adds fixed overheads, and reports total cost, gross profit, and profit margin. A company can post millions in revenue and still lose money, so always pair the top line with cost and margin before judging financial health.
Revenue terms at a glance
| Term | Formula | What it tells you |
|---|---|---|
| Gross revenue | Price x Units sold | Total sales before returns |
| Net revenue | Gross revenue - Returns | Sales the business keeps |
| Average revenue | Net revenue / Net units | Realized price per unit |
| Marginal revenue | Change in TR / Change in units | Revenue from one more unit |
| Gross profit | Net revenue - Total cost | What is left after costs |
| Profit margin | Gross profit / Net revenue | Profit as a share of sales |
How the common revenue figures relate to one another.
Frequently asked questions
How do you calculate total revenue?
Multiply the price per unit by the number of units sold: total revenue = price x quantity. For example, 400 units sold at $25 each gives $10,000 in gross revenue.
How do I find the price or quantity from a revenue target?
Rearrange total revenue = price x quantity. To find price, divide revenue by units sold. To find the units needed, divide revenue by the unit price. Set the "Solve for" menu to price or units and the calculator does the division for you.
What is the difference between gross, net and average revenue?
Gross revenue is price times quantity before deductions. Net revenue subtracts returns, refunds, and allowances. Average revenue is net revenue divided by net units, the realized price per unit after those deductions.
Is revenue the same as profit?
No. Revenue is the total money from sales, the top line of the income statement. Profit is what remains after you subtract the cost of goods sold and operating expenses. Turn on the cost estimate to see gross profit and margin alongside revenue.