Revenue (the “top line”) is income before any costs are deducted. Growing revenue is good only if costs don’t grow faster.
How to use the Revenue Calculator
- Product 1 – price
- Product 1 – quantity
- Product 2 – price
- Product 2 – quantity
- Product 3 – price
- Product 3 – quantity
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the price and quantity of each product.
Tips
- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.
Common mistakes to avoid
- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.
Inputs explained
| Field | What to enter |
|---|---|
| Product 1 – price | Amount in your currency |
| Product 1 – quantity | A number |
| Product 2 – price | Amount in your currency |
| Product 2 – quantity | A number |
| Product 3 – price | Amount in your currency |
| Product 3 – quantity | A number |
What each result means
- Total revenue = [Product 1 – price]×[Product 1 – quantity] + [Product 2 – price]×[Product 2 – quantity] + [Product 3 – price]×[Product 3 – quantity]
- Total units = [Product 1 – quantity] + [Product 2 – quantity] + [Product 3 – quantity]
- Average revenue per unit = [Total revenue]÷[Total units]
Example values
How the main result changes when Product 1 – price changes and everything else stays at the example values above:
| Product 1 – price | Total revenue |
|---|---|
| 12.5 | 35,000 |
| 18.75 | 42,500 |
| 25 | 50,000 |
| 31.25 | 57,500 |
| 37.5 | 65,000 |
| 50 | 80,000 |
Formula
Revenue = price × quantityTotal revenue = Σ price × quantity for each productWorked example
Inputs — Product 1 – price: $25; Product 1 – quantity: 1,200; Product 2 – price: $40; Product 2 – quantity: 500; Product 3 – price: $0; Product 3 – quantity: 0.
Results — Total revenue = $50,000.00; Total units = 1,700; Average revenue per unit = $29.41.
Frequently asked questions
How is revenue calculated?
Price × quantity sold.
What is the difference between revenue and profit?
Profit subtracts all costs from revenue.
Is revenue the same as sales?
Usually; revenue can also include other income such as interest.
What formula does the Revenue Calculator use?
Revenue = price × quantity.