About this calculator
The Revenue Calculator works out the total revenue from selling a quantity of goods or services at a given price, after accounting for any discount and tax or VAT.
How is total revenue calculated?
The base calculation is Revenue = Price per Unit × Quantity Sold. If a discount applies, it's subtracted from the price before multiplying by quantity; if tax or VAT applies, it's added afterward, since sales tax is typically charged on the discounted price rather than the original price.
Revenue vs. profit
Revenue is the total money coming in from sales — it doesn't account for what those goods or services cost to produce. Profit is what's left after subtracting those costs from revenue, so a business can have high revenue and still have low (or negative) profit if costs are high.
Why calculate revenue with discounts and tax included?
Looking at price × quantity alone can overstate or understate what actually lands in the business's account. Factoring in discounts and tax gives a more accurate picture of expected cash flow, which matters for budgeting, forecasting, and comparing pricing strategies.