How to use our sales revenue calculator
Having a solid knowledge of your sales revenue is an important aspect of business planning and budgeting. With Textmagic's sales revenue calculator, you can get a quick overview of exactly how your sales are doing, at any given time, with just the click of a button.
Our revenue calculator is effortless to use. Once you have compiled all of the vital sales information regarding your business, all you need to do is input it into our system, and we will do the rest.
To use our sales revenue calculator, follow these three easy steps:
- Step #1: First, you must input the cost you are selling your goods or services in the first text field.
- Step #2: Next, you must enter the number of units sold in the "Quantity" field.
- Step #3: Finally, enter any discount percentage amount you wish to apply to this sale in the "Discount" field.
Now that all the data is in, click the green button and allow us to take care of the revenue formula. Once the calculation is complete, you will receive the following information regarding your sales revenue:
- Sales with discount - The total amount of funds you will earn from this sale after applying a discount.
- Sales without discount - The total amount of funds you will earn from this sale if you apply no discount.
- Difference - The funds that will be lost after applying the discount.
Now that you have all of the information you need regarding your business's sales from goods or services, you can either download your report or receive a shareable link.
Why you should use our free sales revenue calculator
Textmagic offers reliable and accurate data, plus we know how to calculate sales fluctuations. Our calculator will help you quickly determine discounts and prices that will not negatively affect your revenue.
Benefits of calculating sales revenue
Keeping a close eye on sales revenue is extremely important for all business owners. Calculating sales revenue will give you insight into exactly how your company is doing and whether you are meeting specific sales targets.
Using a profit calculator can:
- Determine how many partners or sales agents you can hire and the commission you can afford to pay them.
- Determine how much inventory you can purchase.
- Determine how much you can afford to pay suppliers.
- Show you how much money you have to invest back into your business.
Why we created this tool
Our calculator should help you figure out the revenue from each sold item. Remember to calculate the cost associated with your goods, such as purchasing or crafting them, sales commissions, delivery costs, etc. Even after applying a discount, you should still have a minimum of 20-30% profit.
Frequently asked questions
Net Sales vs. Gross Sales: What’s the difference?
Gross sales, or gross revenue, is the total amount you have earned before paying all of your expenses. Net sales, or net revenue, are the amount that you are left with after your costs have been paid. Textmagic's sales revenue calculator measures gross sales, so business owners should also consider any additional costs associated with their business and measure net sales as well.
How can you increase sales revenue?
There are many different ways that you can increase your sales revenue. Some of the most commonly used strategies include:
- Increase your prices;
- Reduce the number or value of the discounts you give;
- Increase your customer base;
- Increase the amount that each customer spends per transaction;
- Focus on creating repeat customers.