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

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Variables

TRTotal revenue
PPrice per unit
QQuantity sold

Example

$25 each × 400 units: TR = $10,000

How it works

Total revenue is the amount of money a seller brings in before subtracting any costs. It is found by multiplying the price charged for one item by how many items were sold, because each unit contributes the same amount to the total. If either the price or the quantity changes, the revenue changes proportionally.

When to use it

Use this formula when you need the gross sales from selling identical items, such as in retail, ticket sales, or basic business sales problems. It is especially useful for estimating income before expenses, discounts, or taxes are taken into account.

Worked example, step by step

A bookstore sells notebooks for $8 each. It sells 150 notebooks. TR = P × Q TR = 8 × 150 TR = 1,200 Total revenue = $1,200

Common mistakes to avoid

  • Using profit instead of total revenue
  • Forgetting to multiply by the number of units sold
  • Mixing up price per unit with total sales price

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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Reviewed & maintained by the FormulaWon editorial teamLast reviewed September 2026