Skip to main content
MENU

How to Calculate Revenue

Wondering how much your business could make this year—or if you’re charging the right price(s)? Use this simple revenue formula and calculator to get a quick estimate of your total revenue, which is all of the income your business earns from the products and/or services it sells (excluding production or other costs).Legal Disclaimer †

Total Annual Revenue = Items Sold Annually x Sales Price Per Item

For example, if you expect to sell 2,000 popsicles for $3 each in one year, your total revenue would be $6,000.

* Required Field
Enter the name, number of items sold annually, and sales price of item #1 to get a quick estimate of your revenue.
Success

Estimated Revenue

$0
Per Year

Success Estimated Revenue: $0

Per Year

How to Calculate Revenue FAQs

What is the difference between revenue and profit?

Revenue, for the most part, is the total amount of money your business takes in from the products and/or services it sells. It is also called gross sales or gross income.

Profit is the amount left after you deduct costs, expenses and taxes from your revenue.

How do I calculate total revenue?

To find out your total annual revenue, multiply the number of items sold annually and the sales price per item. If you have multiple items at different price points, you will need to do this for each item and then combine the totals.

What is the total revenue formula?

The total revenue formula is simple: Total Annual Revenue = Items Sold Annually x Sales Price Per Item.

What are the benefits of calculating revenue?

There are a couple of benefits of calculating your business revenue:

  • Calculating your expected revenue provides a starting point of how much money will come into your business to cover all your costs both ongoing and operating.
  • It can help you figure out how much profit you could make in a year, which is how much you could be taxed on at the end of the year. Simply subtract your production and other costs from your revenue to determine your profit.
  • It helps ensure you have the right pricing strategy for your product or service. If your revenue is less than your production and other costs, you will need to adjust your pricing to cover costs and turn a profit.