How to Calculate Total Revenue in Excel? [Step by Step] | Excel Spy (2024)

Microsoft Excel is a spreadsheet software. When it first came out, Microsoft advertised it as a fast and efficient tool that can create spreadsheets, calculate total sales and revenue and do forecasts.

As years progressed, updates became more sophisticated and as of now, we can do so much more with excel.

However, it hasn’t lost its fundamental usage. Calculating revenues, keeping track of sales and inventory, etc. is very easy, fast, and efficient in excel. Especially for small businesses who don’t have the capital to maintain high end accounting software.

So, today let’s learn how to calculate total revenue in excel.

What is Revenue?

Revenue is essentially any sort of cash inflow for a company. So, the most fundamental source of revenue for a company is selling products and services.

The formula is:

Revenue = Quantity X Price.

I will show a simple calculation of revenue in excel.

I have created a product list and prices for a hypothetical company, who sells four products and two services.

So, let’s see how to calculate total revenue in excel for that company.

How to Calculate Total Revenue in Excel?

I will show a simple calculation of revenue in excel.

I have created a product list and prices for a hypothetical company, who sells 4 products and 2 services.

So, let’s see how to calculate total revenue in excel for that company.

Step#1 Create the Product List table

The product list table consists of price, quantity sold, discount (if any), and selling price.

You can make the table more appealing by formatting and editing. You can add colors and borders as well.

This format is may also not be considered an ideal format to keep track of revenue. But let’s keep that discussion for another blog. The calculation follows the same principle for every revenue.

Step#2 Calculate Selling Price

Selling price is essentially the number of products sold multiplied by product price. And if there is a discount, the price gets adjusted by the discounting value.

So, to calculate the selling price type the following formula:

=B2*(C2*(1-D2))

The illustration of the formula is-

Quantity X (Price(1-Discount%))

Now drag the fill handle down to get the rest of the selling price.

Similarly, for the services, type the following formula

=B8*(C8*(1-D8))

You can copy the formula from E2 and copy it on cell E8 to get the same result. You don’t have to type manually.

Step#3 Calculating total Revenue

To calculate the total revenue, you can use the SUM formula in excel. In cell, E6 type the following formula:

=SUM(E2:E5)

Similarly, for the services type the following formula or copy it from cell E6

=SUM(E8:E9)

Now, for the total revenue, type the following formula-

=SUM(E6,E10)

There you go your calculation of total revenue in excel is ready.

You can also calculate net income following the same procedure as well. You can add your expenses and tax obligations in the following rows and deduct them from the total revenue to get the net income.

The formula is:

=E11-E12-E13

The illustration of the formula is:

Revenue-COGS-Tax=Net Income

Note: This is not an ideal format. More calculations go into the cost of goods sold and taxes. This was to just show how the net income is calculated.

Conclusion

It can be tedious and difficult at times to keep track of revenue and calculating it. However, excel has made it fast and efficient.

So, now you know how to calculate total revenue in excel.

Related Article:

• How to Calculate Cumulative Frequency in Excel?
• How to Create a Supply and Demand Graph in Excel?