What is Company Revenue?

In the simplest terms, company revenue generally applies to the income a business brings in through its normal, daily operations. In most businesses, the revenue will be labeled as โ€˜salesโ€™ on the income statement, and it includes literally all the money that is generated before taxes, payroll, or other fees are taken out. Some of the most common revenue streams include:

  • Revenue earned through selling goods and/or services
  • Revenue earned through interest on investments
  • Revenue generated through renting out equipment or a location

The best and easiest way to calculate a companyโ€™s revenue is through an easy formula that provides a clear overview of the current financial situation. That formula looks like this:

Average Price Per Sale/Service x Quantity Sold = Total Revenue

So if your company is selling masks, each for $10, and you sell 1,000 of them in a month, then your total revenue is $10,000. Knowing this information can be helpful when it comes to deciding on your price point, and gauging where your business is financially at any point in time.

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