What Is Revenue? Here’s Everything You Need to Know and How to Calculate It

What Does Revenue Mean for Your Business? Discover What Revenue Is and How to Calculate Your Business's Revenue.

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By Entrepreneur Staff

Businesses are primarily successful based on how much money they make or their revenue. But while anyone can roughly grasp revenue, what it means and why it’s essential, revenue as a business figure is a little more complex, especially when you compare it to other metrics like income.

Below is a breakdown of revenue in detail and how to calculate revenue using a revenue formula.

Revenue Explained

Revenue is the money a business generates from its normal business operations, things like gross sales of products and other income streams. It is calculated by looking at the average product sales price and multiplying it by the number of units sold.