1. What is Sales Revenue?

Sales revenue represents the total income generated from the sale of goods or services before any expenses are deducted. It is the top line of the income statement and a key indicator of business performance.

2. How Does the Calculator Work?

The calculator uses the basic revenue formula:

Where:

• \( Units\ Sold \) — Total quantity of products or services sold
• \( Selling\ Price\ per\ Unit \) — Price charged for each unit
• \( Revenue \) — Total sales revenue generated

Explanation: This fundamental accounting formula calculates gross revenue by multiplying the number of units sold by the price per unit.

3. Importance of Revenue Calculation

Details: Accurate revenue calculation is essential for financial reporting, business planning, tax compliance, and assessing company growth and profitability.

4. Using the Calculator

Tips: Enter the total number of units sold and the selling price per unit. Both values must be non-negative numbers. The calculator will compute the total revenue.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between revenue and profit?
A: Revenue is total sales income, while profit is revenue minus all expenses (cost of goods sold, operating expenses, taxes, etc.).

Q2: Does revenue include discounts and returns?
A: Gross revenue doesn't account for these. Net revenue deducts discounts, returns, and allowances from gross revenue.

Q3: How often should revenue be calculated?
A: Businesses typically calculate revenue monthly for internal reporting and quarterly/annually for financial statements.

Q4: What if I have multiple products at different prices?
A: Calculate revenue for each product separately using this formula, then sum all individual revenues for total revenue.

Q5: Is this formula applicable to service businesses?
A: Yes, for service businesses, "units sold" represents services rendered and "price per unit" is the service fee charged.