Enter your total estimated sales and the price per product or service into the calculator to determine your projected income.
Project Income Formula
The following formula is used to calculate a projected income:
PI = ES * PPP
- Where PI is the project income ($)
- ES is the estimated number of sales/units sold
- PPP is the price of each product or service sold
- This is often calculated as the average price when looking at more than one item
To calculate the project income, multiply the estimated number of sales units by the price of each product.
Project Income Definition
What is a project income?
A projected income is a type of revenue projection that estimates how much a person or company will earn on a certain amount of sales.
Project incomes are used in forecasting, budgeting, and planning.
How to calculate projected income?
The following example outlines how to calculate a projected income.
First, determine the total number of sales of a product or service. In this example, we are looking at a store that sells phones. Based on last year’s sales, this year’s sales should be in the range of 1000 units.
Next, determine the price per unit. In this case, the average price of each phone is $200.00.
Finally, calculate the projected income using the formula above:
PI = ES * PPP
PI = 1000 * $200
PI = $200,000.00