How To Calculate Average Revenue

Average revenue 500 000 400 1 250.

How to calculate average revenue. The following equation is used to calculate the average revenue of a product. Tr price p total output q for instance if an organization sells 1000 units of a product at price of rs. 10 per unit the total revenue of the organization would be rs. Usually arpu is calculated for either a monthly or annual time period but it could be done for any interval.

Revenue number of units sold x average price. For service based companies the formula is revenue number of customers x average price of services. Total revenue is 500 000 and 400 units are produced. Sales revenue 1 000 x 350 350 000.

To calculate business a s average revenue add the data points for example. Therefore average revenue is 1 250 per unit. Sources and more resources. Average revenue 112 000 8 14 000.

Arpu is not a gaap metric but there is a generally accepted process for calculating. Formula how to calculate average revenue. Ar tr q where ar is the average revenue per unit tr is the total revenue. It is obtained by dividing the total revenue by total output.

A sample sales revenue calculation. The most simple formula for calculating revenue is. Average revenue total revenue quantity. The 196 is normally the amount found on the top line of the income statement.

Total revenue 10 000 15 000 8 000 12 000 15 000 14 000 18 000 20 000 112 000. For example let s say you generated 500 in revenue last month and had 1 000 active users. Total revenue tr equals quantity of output multiplied by price per unit. Last year we sold 1 000 game consoles for 350 per piece.

The company s net revenue will be equal to 200 0 98 196. How to calculate average revenue per user. Simply divide the total revenue by the number of subscribers. Average revenue refers to the revenue obtained by the seller by selling the per unit commodity.