What is Revenue?

reh·vuh·noo

Revenue is what your business receives from sales of any products/services. This includes all operating costs such as labor, rent, utilities, etc.

Revenue is an indicator of your company’s success because it shows how much money it made during one period. It’s usually expressed in currency or percentage of the total sales.

Revenue can be either positive or negative.

• A positive revenue number means that your company made more money than it spent during that period.
• A negative revenue number means that your company lost money and had to pay out more than it took in during that period.

Revenue formula

Total Revenue = Number of units sold x Cost per unit

For example:

Your business sold 15 pairs of jeans for $100 last month. So your total revenue for the last month is $1,500 = 15 x $100