Revenue & Sales
Basic

Total Revenue

Total revenue is the selling price multiplied by the number of units sold.

Formula

TR=P×QTR = P \times Q

Variables

TRTotal revenue
PPrice per unit
QQuantity sold

Example

$25 each × 400 units: TR = $10,000

Did You Know?

Total revenue is the top line of the income statement — profit is what remains after costs are subtracted.

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Net Revenue

Basic

Net revenue is gross revenue less returns, refunds and discounts — the amount actually recognised.

Average Revenue

Basic

Average revenue is total revenue divided by units sold — equal to price per unit in a single-price market.

Marginal Revenue

Intermediate

Marginal revenue is the extra revenue earned from selling one additional unit.

Revenue Growth Rate

Basic

The percentage change in revenue from one period to the next.

Monthly Recurring Revenue

Intermediate

Monthly recurring revenue is the number of active subscribers times average revenue per user per month.

Annual Recurring Revenue

Basic

Annual recurring revenue annualises the monthly recurring revenue of a subscription business.