Revenue is the total amount of money a business earns from selling its products or services, before taking away any costs or expenses.
What Does Revenue Include?
Revenue can come from:
- Selling goods
- Charging for services
- Subscription fees
- Delivery or handling charges
Anything a business charges for and gets paid counts as revenue.
Why It Matters
Revenue shows how much money a business brings in.
- More revenue usually means more sales.
- It helps track growth and performance.
- It’s the starting point for working out profit.
Revenue vs Profit
People often mix up revenue and profit.
- Revenue is all the money coming in.
- Profit is what’s left after all the bills are paid.
Example
A business sells 500 products at £10 each. Its revenue is £5,000 — even if it spent £2,000 on stock and delivery.