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Revenue Formula

Revenue is mainly used in economics and business, to measure the success and progress of the trends in the total revenue. These trends will be useful for the future reference purpose and know the total profit of the business.

In economics, revenue will help know the sales of given quantity of goods and services. The total price gained by a given source is revenue. Revenue should be reported to the government periodically so that the government could know the total income of the country and collect the taxes.  Mathematically speaking, the product of quantity and price is revenue.  

\[\large Revenue=Quantity \times Price\]

Solved Example

Question: What will be the revenue of a newspaper stand if he is selling 500 copies of a newspaper at Rs. 5 per copy.

Solution:

Revenue formula is given as
$Revenue = Quantity \times Price$

Here,
Quantity = 500

Price – Rs. 5

So, Revenue = 500 x 5 = 2500