How to Calculate Gross Revenue

Gross revenue is a concept in business that allows companies to determine how much revenue they have collected based on the amount of material they sell or the number of services they provide.

It differs from other forms of revenue information in that gross revenue does not account for any costs associated with production of the material or the salaries of people providing services, just how much revenue is actually coming in from customers purchasing the product.

As such, companies do not calculate gross revenue to get a good estimate of how much revenue their company is earning.

Determine Time Frame

Decide what period of time you want to calculate gross revenue for. This will allow you to look at the prices of the product during that period of time and gather the information about how many products were sold.

Locate Costs

Find out how much the company's product costs a customer during the specific period of time. A simple examination of how much an item is sold for in the store is usually sufficient, but sometimes there are special sale prices involved.

Find Items Sold

Find out how many items were sold over a specific period of time. To do that, go into the records of the company that is selling the product to see how many specific items have been sold over a period of time.

Calculate Revenue

Multiply the items sold by the price of the item to find gross revenue for that product. If you want to find gross revenue of a company that sells a variety of products, repeat the above steps for each product that is sold.

Items Sold x Price = Gross Revenue