Revenue Calculator (price × units, discounts & returns)

Understanding the revenue calculator — concept and principle

This calculator works out net revenue from list price and units sold, after discounts and returns, plus any other revenue such as shipping fees. It shows gross revenue, discounts given, refunds, units kept by customers, average revenue per unit kept and net revenue as a share of gross. Online sellers, shop owners and students use it to see how much of the headline sales figure the business actually keeps.

List price is not revenue — with the default inputs: $52,303.

How it is calculated

Gross revenue = list price × units sold
Discounts = gross revenue × average discount %
Returns and refunds = (gross − discounts) × return %
Net revenue = gross − discounts − returns + other revenue
Units kept = units sold × (1 − return %)
Average revenue per unit kept = (net revenue − other revenue) ÷ units kept
Net as % of gross = net revenue ÷ gross revenue × 100

The principle

The "net sales" line at the top of an income statement is sales less discounts and less returns and allowances. Returns are refunded at the price customers actually paid, so they are calculated after discounts. Sales tax or VAT collected for the government is not revenue, so prices should be entered without it. Looking at net revenue as a share of gross shows how much discounting and returns erode sales before any cost is paid.

Worked example

Defaults: list price 49; 1,200 units; average discount 10%; returns 4%; other revenue 1,500.

Gross revenue = 49 × 1,200 = $58,800.
Discounts = 58,800 × 10% = $5,880.
Returns = 52,920 × 4% = $2,117.
Net revenue = 58,800 − 5,880 − 2,117 + 1,500 = $52,303; 89% of gross.
Units kept = 1,200 × 0.96 = 1,152; revenue per unit kept = 50,803 ÷ 1,152 = $44.10.

Other revenue: $1,500.

Each point is the calculator re-run with only “List price per unit” changed; the gold point is the default example. Change the inputs above and this chart follows your numbers.

List price per unit	Net revenue
12.2	$14,201
24.5	$26,902
36.8	$39,602
49	$52,303
61.2	$65,004
73.5	$77,705
98	$103,106

How to read the result

Here about 11% of headline sales disappears in discounts and returns. If that share grows, check whether promotions are too frequent or whether product descriptions cause returns. Compare the revenue per unit kept with your unit cost to see the true margin per sale.

Common mistakes

Including VAT or sales tax in revenue.
Calculating returns on the list price instead of the discounted price.
Counting revenue for orders not yet delivered.
Forgetting platform or payment fees, which are costs, not revenue reductions.

Keep in mind: Accounting rules on when revenue is recognised can differ from this simple calculation. Not accounting or tax advice.

Frequently asked questions

What is the difference between gross and net revenue?

Gross revenue is list price × units; net revenue subtracts discounts and returns and adds other revenue.

Is shipping charged to customers revenue?

Generally yes, when you charge it; enter it as other revenue.

Should sales tax be included?

No. It is collected for the government and is not revenue.

Sources: OpenStax, Principles of Accounting, Volume 1: Financial Accounting, section 6.6 (net sales in the multi-step income statement)

Checked 9 Nov 2026. Net sales = sales − sales discounts − sales returns and allowances: OpenStax, “Principles of Accounting, Volume 1: Financial Accounting”, section 6.6 (multi-step income statement).

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