The revenue formula
Revenue = Price per Unit × Quantity Sold Revenue is the total amount collected from sales before subtracting any costs — it's not the same as profit. 500 units sold at $20 each is $10,000 in revenue, regardless of what it cost to produce or sell those units.
Solving for price or quantity
The same formula rearranges to answer two other common questions. If you have a revenue target and know how many units you expect to sell, divide revenue by quantity to find the price you'd need to charge: $10,000 ÷ 500 units = $20 per unit. If instead you know the price and need to know how many units to sell, divide revenue by price: $10,000 ÷ $20 = 500 units.
Revenue isn't profit
This is the most common mix-up with revenue figures — a business can have strong revenue and still lose money if costs exceed it. For a fuller picture that accounts for costs, see the Break-even Calculator (fixed and variable costs) or the Profit Margin Calculator (profit as a share of revenue or cost).
Frequently asked questions
How do you calculate total revenue?
Multiply price per unit by quantity sold. 500 units at $20 each equals $10,000 in total revenue.
Is revenue the same as profit?
No. Revenue is the total amount collected from sales, before any costs are subtracted. Profit is what's left after costs — a business can have high revenue and still operate at a loss if costs are high enough.
How do I find the price needed to hit a revenue target?
Divide the target revenue by the number of units you expect to sell. A $10,000 target at 500 expected units means charging $20 per unit.