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Business Revenue Calculator
Calculate your business revenue from unit sales, customer count, or subscription metrics. Project monthly and annual revenue with growth rates to set targets and plan for hiring, investment, and scaling decisions.
Revenue is the top line of every business — the starting point for all profitability calculations. Whether you sell products, charge subscriptions, or bill by project, understanding your revenue drivers and projecting growth is essential for business planning, fundraising, and setting meaningful targets.
Formula
Revenue = Units Sold × Average Price | MRR = Customers × ARPU | Annual Revenue = MRR × 12 | Projected Revenue = Current × (1 + Growth Rate)^Months
Revenue Models and Calculation
Different business models calculate revenue differently. Understanding your revenue model and key drivers allows accurate forecasting and identification of the highest-leverage growth levers for your specific business.
Business Model
Revenue Formula
Key Metric
Product business
Units sold × Price per unit
Track average order value and units
Subscription (SaaS)
Customers × ARPU × 12
MRR × 12 = ARR
Service/agency
Billable hours × Rate
Utilization rate is key metric
Marketplace
GMV × Take rate
GMV = Gross Merchandise Value
Advertising
Page views × CPM / 1000
CPM = Cost per 1000 impressions
Freemium
Free users × Conversion% × Paid ARPU
Conversion rate drives revenue
Revenue Growth Benchmarks
Stage
Annual Growth
Assessment
Early-stage startup
100-300%/yr
Hypergrowth phase
Growth-stage startup
50-100%/yr
Scaling efficiently
Established startup
20-50%/yr
Sustainable growth
Public SaaS company
20-40%/yr
Rule of 40 companies
Traditional business
5-15%/yr
Healthy mature business
Declining business
<5% or negative
Needs intervention
Frequently Asked Questions
Annual Revenue = Sum of all revenue-generating activities for 12 months. For product businesses: Units Sold × Average Selling Price. For subscriptions: Monthly Customers × Monthly Price × 12. For services: Billable Hours × Hourly Rate. For e-commerce: Number of Orders × Average Order Value. Total revenue = all revenue streams combined.
MRR (Monthly Recurring Revenue) = total predictable revenue per month from active subscriptions. ARR (Annual Recurring Revenue) = MRR × 12. These metrics apply to subscription businesses. $50,000 MRR = $600,000 ARR. MRR growth rate = key health metric: (Current MRR - Previous MRR) / Previous MRR × 100. 10-15% monthly MRR growth = hypergrowth.
T2D3 rule (popular SaaS benchmark): Triple revenue in years 1-2, Double in years 3-5. Year 1: $1M → $3M. Year 2: $3M → $9M. Year 3: $9M → $18M. Year 4: $18M → $36M. Year 5: $36M → $72M. Reaching $100M ARR in 7-10 years at this pace. Most startups fall short — 20-50% annual growth in years 3-5 is still healthy.
Simple projection: Future Revenue = Current Revenue × (1 + Monthly Growth Rate)^Months. At 10% monthly growth, $50,000 current MRR projects to $50,000 × (1.10)^12 = $156,920 in 12 months. More sophisticated: build a bottoms-up model from leads, conversion rates, and deal sizes. Top-down models (market share projections) are less reliable for early-stage companies.
Rule of 40: Revenue Growth Rate % + Profit Margin % should equal or exceed 40. A SaaS company growing 30% with 15% profit margin: 30 + 15 = 45 — above 40, healthy. A company growing 60% with -15% margin: 60 + (-15) = 45 — also healthy. Above 40 indicates a well-balanced growth and profitability tradeoff. Used by investors to evaluate SaaS company health.
Gross Revenue: total revenue before any deductions (all sales at full price). Net Revenue: gross revenue minus returns, discounts, and allowances. Discounts, promotional pricing, and return allowances are deducted to arrive at net revenue. Net revenue is what appears on the income statement. Gross and net revenue are important for understanding customer satisfaction (high returns = product issues) and pricing strategy effectiveness.