Enter the gross sales, total returns, allowances, and discounts into the calculator to determine the net sales revenue.
Net Sales Revenue Formula
The following formula is used to calculate a net sales revenue.
NS = GS – R – A – D
- Where NS is the net sales revenue
- GS is the gross sales
- R is the total returns
- A is the allowances
- D is the discounts
Net Sales Revenue Definition
A net sales revenue is a measure of the total sales revenue minus returns, allowances, and discounts.
Net Sales Revenue Example
How to calculate net sales revenue?
- First, determine the gross sales.
For this example, we will say the gross sales is $1,000.00.
- Next, determine the total returns.
This is the value of all returns. We find this to be $50.00.
- Next, determine the total allowance.
We find this value to be $75.00.
- Next determine the total discounts.
We find this value to be $50.00.
- Finally, calculate the net sales revenue
Using the formula we find the net sales revenue = $825.00
Net sales revenue is the total revenue directly from sales after returns, discounts, and allowances have been factored in.
Gross sales are the total sales revenue of all sold items before costs.