Financial Terms / revenue

# Revenue - Explained

Revenue is the backbone of any business, as it is what keeps the business afloat and determines how many employees can be hired.

## Formula

``Revenue = Average Sales Price x Number of Items Sold``

## How do I calculate the revenue?

`It is important to understand how to calculate revenue in order to keep track of the financial health of your business. Revenue is calculated by multiplying the average sales price with the number of items sold. This can be done using a spreadsheet program such as Sourcetable. The formula for calculating revenue is: `Revenue = Average Sales Price x Number of Items Sold`. It is important to note that revenue only includes the sale proceeds and does not include any other sources of income.`

## What is revenue?

`Revenue is generated from normal business operations. It is calculated as the average sales price times the number of units sold and is also known as sales on the financial statement.`

## Is revenue only sales proceeds?

`Yes, revenue is only sales proceeds.`

## Key Points

How do I calculate revenue?
`Revenue = Average Sales Price x Number of Items Sold`
Revenue is generated from normal business operations
Revenue is the money that a company brings in from its normal business operations, such as selling products or services. This is the main source of money that the company can use to pay its bills and keep its business running.
Revenue is calculated as the average sales price times the number of items sold
Revenue is calculated by taking the average sales price of the items being sold and multiplying it by the number of items sold. This will give you the total revenue that was generated by the sales.
Revenue is also known as sales on the income statement
Revenue is also referred to as "sales" on the income statement. The income statement is a document that details the company's total revenue and expenses, and is used to measure the company's financial performance.
Revenue is only sales proceeds
Revenue only includes the money that was generated from selling products or services. It does not include any money from investments or other forms of income, such as interest on bank accounts.