What this calculator does
Revenue is the total amount of money a sale or business brings in before any costs are subtracted, and the basic revenue calculation is simply price per unit multiplied by the number of units sold. It is the top line a business works down from to reach profit, and it is worth keeping distinct from profit itself, which only appears after costs come out.
A single product line covers most quick estimates, but many businesses sell more than one product or service at different prices. This calculator adds a second product line so the combined revenue and the resulting average price per unit across both are worked out in one step, rather than adding two separate calculations by hand.
The formula
Multiply the price per unit by the quantity sold for each product line, then add the results together for total revenue. Total units sold across both lines, divided into total revenue, gives the average price actually achieved per unit.
| Term | Meaning |
|---|---|
| Revenue | The total money received from sales, before any costs are deducted: price × quantity. |
| Price per unit | The amount charged for one unit of the product or service. |
| Average price per unit | Total revenue divided by total units sold across every product line combined. |
The inputs explained
| Field | What to enter |
|---|---|
| Price per unit, product 1 ($) | The selling price for the first product or service. |
| Units sold, product 1 | The number of units of the first product sold. |
| Price per unit, product 2 (0 to skip) ($) | The selling price for a second product or service, if there is one. Leave at 0 to ignore it. |
| Units sold, product 2 (0 to skip) | The number of units of the second product sold. Leave at 0 to ignore it. |
When to use it
Estimating revenue before a launch
A projected price and an expected sales volume turn into a revenue forecast before a single sale has actually happened, useful for a quick sanity check on a business plan or budget.
Comparing two pricing options
Running the same expected quantity through two different prices shows the revenue difference a price change would make, before deciding whether to raise or lower it.
Combining revenue across a small product range
Where a business sells a couple of distinct products at different prices, adding both lines gives total revenue in one step rather than working them out separately and adding by hand.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How does revenue change as units sold increase, at a fixed price?
A fixed $25 price, across a range of units sold.
| Units sold | Total revenue | Average price per unit |
|---|---|---|
| 100 | $2,500.00 | $25.00 |
| 200 | $5,000.00 | $25.00 |
| 400 | $10,000.00 | $25.00 |
| 600 | $15,000.00 | $25.00 |
| 800 | $20,000.00 | $25.00 |
| 1,000 | $25,000.00 | $25.00 |
How does revenue change as price increases, at a fixed quantity?
A fixed 400 units sold, across a range of prices per unit.
| Price per unit | Total revenue | Average price per unit |
|---|---|---|
| $10.00 | $4,000.00 | $10.00 |
| $20.00 | $8,000.00 | $20.00 |
| $25.00 | $10,000.00 | $25.00 |
| $30.00 | $12,000.00 | $30.00 |
| $40.00 | $16,000.00 | $40.00 |
| $50.00 | $20,000.00 | $50.00 |
Questions
How to calculate revenue when I sell more than two products?
The same idea extends indefinitely: multiply price by quantity for every product line, then add all of them together. This calculator handles two lines directly; for more, work out each line's revenue separately and sum the totals.
Is revenue the same as profit?
No. Revenue is the total money coming in from sales, before any cost is subtracted. Profit is what is left after the cost of goods sold and other expenses come out of that revenue.
What is the difference between revenue and cash actually received?
Revenue is usually recognised when a sale happens, which is not always the same moment the cash arrives, particularly where customers are invoiced and pay later. This calculator works out revenue from the sale itself, not cash timing.
Why does average price per unit matter if I already have total revenue?
It is a useful check when prices vary across product lines or over time, since it shows the effective price actually achieved across everything sold, which can differ noticeably from any single listed price.
Once you have revenue, subtract costs with the profit calculator to see what is actually left over. To see what share of each sale is margin rather than cost, use the margin calculator.