What Is Net Revenue Formula Complete Guide

For example lets take a look at a simple representation of an income statement. A simple way to solve for revenue is by multiplying the number of sales and the sales price or average service price Revenue Sales x Average Price of Service or Sales Price. Youll find net income whats left over after all expenses are deducted at the bottom of the income statement.

Net Income or Net profit is calculated so that investors can measure the amount by which the total revenue exceeds the total expenses of the Company.

All revenues and all expenses are used in this formula. Revenue Formula Revenue is total sales of goods and services done by the company in a period. This figure indicates whether your business is profitable. In very basic terms Net Income Formula is described as follows.