1. What is Total Revenue?

Total Revenue is the total income a business generates from selling goods or services. It's calculated by multiplying the price per unit by the number of units 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 fundamental business calculation shows the total sales value before any costs are deducted.

3. Importance of Revenue Calculation

Details: Revenue is the top line of the income statement and a key metric for assessing business performance, growth, and market position.

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, while profit is revenue minus all expenses and costs.

Q2: What's the difference between revenue and income?
A: Revenue refers specifically to sales, while income can include other sources like investments.

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

Q4: Can revenue be negative?
A: No, revenue can be zero but not negative since it represents sales value.

Q5: Why is revenue growth important?
A: Consistent revenue growth indicates business health and market demand for products/services.