Total revenue is more than just a metric to look for in your financial statement—it’s the heartbeat of your business. It indicates what your market performance looks like, your customer engagement, and your growth potential.
At Brixx, we get it – understanding your numbers can feel overwhelming, but total revenue is one of those things you really do want to keep tabs on. It helps you see the big picture and make choices that actually move your business forward.
It doesn’t matter if you’re running a small startup, managing a block of flats, or selling motorbikes – knowing how much money is coming in gives you a better handle on what’s working and what’s not. Read on to learn about optimising your strategies, and confidently forecasting your financial future.
What is total revenue?
Think of total revenue as the full amount of money that your business makes from selling products or services over a certain time period – before you subtract anything like costs or expenses. It’s the top-line number that shows you how much you’ve made purely from sales.
The formula is simple:
Total Revenue = Price × Quantity Sold
That’s it. However, while the formula is simple, the number itself can tell you a lot. It can show whether or not your pricing makes sense, if your marketing is actually bringing in customers, or if you’re growing month to month. If your revenue isn’t moving. it’s often the first sign that something needs adjusting.
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Why is total revenue important?
Total revenue is an essential metric for:
- Helping you to evaluate your performance. It’s a quick way to tell if your business is on the right track. If revenue’s growing, something’s working.
- Helping you to plan ahead and forecast. Whether that’s setting next quarter’s targets or just figuring out if you can afford to hire someone.
- Helping you to understand strategy. You’ll start noticing patterns. Maybe one product’s taking off, or maybe a service isn’t pulling its weight anymore.
- Helping you to talk to investors or partners. Revenue is often the first thing they will ask about. It’s a simple signal that shows you’re actually making progress.
That said, revenue is just one part of the bigger picture. You’ll want to compare it with costs, margins, and all the other moving pieces. That’s where using financial modelling software like Brixx really helps – because trying to juggle all this stuff manually gets messy fast.
How to calculate total revenue
As we’ve previously noted, the formula for calculating total revenue is simple:
Total Revenue = Price per Unit × Number of Units Sold
Example of total revenue calculation:
Suppose your luxury candle business sells 1,000 units of your nicest candles at £20 each.
Total Revenue = £20 × 1,000 = £20,000
If you increase the price to £25 and maintain the same sales volume, your revenue rises to £25,000. Alternatively, a lower price of £18 might lead to 1,200 units sold, generating £21,600 in total revenue.
These scenarios highlight how pricing and sales strategies directly impact your revenue – and why understanding these dynamics is essential.
Methods to increase total revenue
Increasing your total revenue can de done in many ways – depending on your business model and market, of course. Here are some well-proven strategies:
You can refine your pricing strategies
Adjust prices to reflect the value of your product or service, whether through premium pricing or competitive discounts.
Try increasing your volume
Expand your customer base and improve marketing efforts! Increasing distribution channels will help with total revenue.
You can upsell and cross-sell
Try to encourage existing customers to purchase complementary or higher-tier products.
Look into diversifying your product lines
Introducing new products can attract a wider audience and boost overall revenue.
Ensure your customer experience is optimal
Your customers will be more likely to repeatedly purchase from your business and make recommendations to others if the service is excellent.
Try using Brixx to optimise your total revenue
Brixx empowers businesses to track, analyse, and forecast total revenue as part of a broader financial strategy. Our platform makes it easy to:
- Visualise your revenue trends over time
- Carry out scenario planning to model model pricing changes for sales growth
- Assess the impact of new products or services on overall income
With Brixx, you can move beyond just tracking revenue – our tools help you understand it, plan for growth, and execute strategies that maximize profitability. Get started today for free and see for yourself!
Final thoughts
Total revenue is one of the clearest indicators of a business’s success, but it’s just the beginning. By pairing this metric with comprehensive financial planning, businesses can unlock sustainable growth and resilience.
Let Brixx guide you in understanding and optimizing your revenue streams. Whether you’re planning next year’s budget or strategizing for the next decade, our software is your partner in turning financial data into actionable plans.
Total revenue FAQs
What is the difference between total revenue and net revenue?
Total revenue is the total income made from selling goods or services – before deducting any costs or expenses.
Net revenue, on the other hand, is what’s left after subtracting returns, discounts, and allowances from total revenue.
How does total revenue impact profitability?
Total revenue is the starting point for understanding profitability. While it shows how much money your business has generated, profitability depends on subtracting costs from that revenue.
Can total revenue decrease even if sales increase?
Yes, if prices are lowered significantly to drive sales, total revenue might decrease despite higher sales volume. It’s crucial to find the right balance between price and quantity.
