Revenue Calculator
Calculate total revenue, optimize pricing strategies, and analyze business performance
Calculate Revenue
The selling price for each unit of product/service
Number of units sold during the period
Select time period for revenue projection analysis
Please enter both price and quantity to calculate total revenue.
Example: Software Business
Scenario
Business: Software Company
Product price: $40 per license
Units sold: 20 licenses
Time period: Monthly
Revenue Calculation
Total Revenue = $40 × 20 = $800
Average Revenue per Unit = $40
Market Position: Niche Market
Pricing Strategy: Competitive Pricing
Performance Level: Developing
Revenue Performance Levels
Pricing Strategies
Premium Pricing: High price, focus on quality and exclusivity
Competitive Pricing: Market-rate pricing for established products
Value Pricing: Balance of quality and affordability
Penetration Pricing: Low price to gain market share
Understanding Revenue and the Total Revenue Test
What is Total Revenue?
Total revenue is the complete amount of income generated from selling goods or services before any costs are deducted. It's calculated by multiplying the price per unit by the number of units sold and serves as a fundamental measure of business performance.
Revenue Optimization
- •Analyze price elasticity to find optimal pricing
- •Test different price points to maximize revenue
- •Consider market demand and competitor pricing
- •Balance volume and margin for maximum revenue
Revenue Formula
Total Revenue = Price × Quantity
Average Revenue = Total Revenue ÷ Quantity
Revenue per Period = Total Revenue × Time Multiplier
The Total Revenue Test
- Elastic Demand: Price ↓ → Revenue ↑
- Inelastic Demand: Price ↑ → Revenue ↑
- Unitary Elastic: Revenue maximized (elasticity = -1)
- Strategic Goal: Find price point for maximum total revenue
Key Insight: Revenue is maximized when demand elasticity equals -1 (unitary elastic).