1. What is Sales Revenue?

Sales Revenue is the income a company generates from its normal business operations, typically from the sale of goods and services to customers. It's calculated by multiplying the price of goods/services by the quantity sold.

2. How Does the Calculator Work?

The calculator uses the revenue formula:

Where:

• \( \text{Price} \) — Price per unit in dollars
• \( \text{Quantity Sold} \) — Number of units sold

Explanation: This simple multiplication gives the total revenue generated from sales.

3. Importance of Revenue Calculation

Details: Revenue is the top line of the income statement and a key metric for assessing business performance. It's essential for financial planning, budgeting, and growth strategies.

4. Using the Calculator

Tips: Enter price per unit in dollars and quantity sold in units. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is revenue the same as profit?
A: No, revenue is total sales before expenses. Profit is revenue minus all costs and expenses.

Q2: What's the difference between gross and net revenue?
A: Gross revenue is total sales without deductions. Net revenue accounts for returns, discounts, and allowances.

Q3: How often should revenue be calculated?
A: Typically calculated monthly for internal reporting and quarterly for financial statements.

Q4: Does this calculator work for service businesses?
A: Yes, where "units" can represent service hours, projects, or other measurable service quantities.

Q5: How do discounts affect revenue calculations?
A: Discounts reduce the effective price per unit. Either use discounted price or calculate gross revenue first then subtract discounts.