Finance and accounting
Revenue
Money earned from sales, before costs.
Last reviewedWhat does Revenue mean?
Revenue is the money a business earns from selling its products or services in a period, before any costs are taken out. It is reported net of discounts and returns, and it excludes sales taxes such as VAT or GST, which the business collects for the government. A simple way to break it down is price times quantity.
Where does it come up in case interview prep?
- The profit and loss statement, line by lineLesson in Business basics for non-business learners
- Clean splits: being MECELesson in How to structure any problem
- Diagnosing a profit decline: the reference caseLesson in Profitability
- Profit and lossLesson
- Market expansionLesson
- Revenue growth and growth strategyLesson
- How retail works and makes moneyLesson in Retail
- How e-commerce and marketplaces make moneyLesson in E-commerce, marketplaces, and quick commerce
Related terms
- ProfitThe money left over after costs. Revenue minus cost.
- CostWhat it takes to make and sell the product in a period.
- VAT and GSTSales taxes collected by businesses for the government.
- Fixed costA cost that stays the same when volume changes, within a normal range.
- Variable costA cost that rises and falls with how much you make.
- Semi-variable costA cost with a fixed part and a part that moves with volume.
- Step costA cost that is flat over a range, then jumps.
- Marginal costThe extra cost of making one more unit.