Enter the sales on credit ($), the sales returns ($), and the sales allowances ($) into the Net Credit Sales Calculator. The calculator will evaluate and display the Net Credit Sales. 

Net Credit Sales Formula

The following formula is used to calculate the Net Credit Sales. 

NCS = SOC - SR - SA
  • Where NCS is the Net Credit Sales ($)
  • SOC is the sales on credit ($) 
  • SR is the sales returns ($) 
  • SA is the sales allowances ($) 

To calculate the net credit sales, subtract the sales returns and allowances from the credit.

How to Calculate Net Credit Sales?

The following example problems outline how to calculate Net Credit Sales.

Example Problem #1

  1. First, determine the sales on credit ($).
    1. The sales on credit ($) is given as 600.
  2. Next, determine the sales returns ($).
    1. The sales returns ($) is calculated as: 20.
  3. Next, determine the sales allowances ($).
    1. The sales allowances ($) is found to be: 40.
  4. Finally, calculate the Net Credit Sales using the formula above: 

NCS = SOC – SR – SA

Inserting the values from above yields: 

NCS = 600 – 20 – 40 = 540 ($)

Example Problem #2

The variables needed for this problem are provided below:

sales on credit ($) = 700

sales returns ($) = 200

sales allowances ($) = 100

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

NCS = SOC – SR – SA = ($)