# Gross Revenue

### What is gross revenue?

Gross Revenue is the sum of all the amount received in sales, without considering any expenses. For example, if a toy manufacturer sells a toy for \$100, the gross revenue is \$100 (even though the cost to produce the toy was \$60).

### How to calculate gross revenue?

You calculate gross revenue by multiplying the total number of items sold by the unit price of the sale. Suppose the toy manufacturer has N products, and they are sold for a fixed price (no discounts, promotions, or extra charges applied), their gross revenue would be:

Gross revenue = (Product 1 Price x Units sold) + (Product 2 Price x Units sold) + (Product N Price x Units sold)

The gross revenue is relative to a certain period of time. For example, you calculate the year Gross Revenue by considering only the sales made during the chosen year.

### Can gross revenue be negative?

No. Gross revenue cannot be negative since it is the sum of all income and it does not count any losses or costs.

### Are gross revenue and gross profit the same?

No. Gross profit is the profit made after deducting all the costs that are related to producing the products. You can calculate gross profit by deducting the cost of goods sold (COGS) from your Net Revenue.