Enter the average daily sales and the price per sale ($) into the calculator to determine the Annual Revenue.
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Annual Revenue Formula
The following formula is used to calculate the Annual Revenue.
AR = DS * PPS * 365
- Where AR is the Annual Revenue ($)
- DS is the average daily sales
- PPS is the price per sale ($)
To calculate the annual revenue, multiply the average daily sales by the price per sales, then multiply by 365.
How to Calculate Annual Revenue?
The following example problems outline how to calculate Annual Revenue.
Example Problem #1:
- First, determine the average daily sales. In this example, the average daily sales is given as 150.
- Next, determine the price per sale ($). For this problem, the price per sale ($) is given as 2.5.
- Finally, calculate the Annual Revenue using the equation above:
AR = DS * PPS * 365
The values given above are inserted into the equation below:
AR = 150 * 2.5 * 365 = 136,875 ($)
Example Problem #2:
The variables needed for this problem are provided below:
average daily sales = 675
price per sale ($) = 5.5
Entering these values and solving gives:
AR = 675 * 5.5 * 365 = 1,355,062.5 ($)
