How to Calculate Gross Revenue for your Business

How to Calculate Gross Revenue for your Business

Gross revenue is the total amount of sales and other revenue streams a company has made over the year. It’s essential for determining if business expenses align with the revenue, as it indicates how much the company made without accounting for costs.

How to calculate gross revenue

Gross Revenue = Sales Revenue (Price x Quantity Sold) + Other Revenue Streams

Gross revenue calculation example

For example, consider Savannah’s jewelry store. They sell 1,000 units of a product for $7,500 each. Using the formula, their sales revenue is $7.5 million.

Next, add the other revenue streams to the formula. Other revenue streams include any income not directly from product or service sales, such as dividend income, royalties, rental income, and subscription fees.

For Savannah’s jewelry shop, they earned $132,000 from other revenue streams. Inputting all the numbers into the formula gives a total revenue of $7,632,000.

Gross Revenue = $7,500,000 + $132,000 = $7,632,000

And that’s it! Calculating gross revenue in business is a simple concept that can significantly aid in determining the financial health of a company.

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