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See what your sales really bring in. Enter units sold, price, unit cost and your discount and returns rates, then press Calculate to reveal net revenue and gross profit.
Written by TopicDrill Editorial Team·Updated June 2026
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The tool starts with gross revenue, which is simply units sold multiplied by your price per unit. It then peels away the two things that erode a top line: the average discount you grant customers and the share of sales that come back as returns. What is left is net revenue, the cash you can actually count on.
To turn revenue into profit, it multiplies your per unit cost by the units you kept and subtracts that from net revenue. The chart plots both net revenue and gross profit across a range of volumes, so you can see how scaling units changes the gap between the two lines.
Sell 1,200 units at 49 dollars each and gross revenue is 58,800 dollars. Apply a 10 percent average discount and a 4 percent returns rate and net revenue lands near 50,800 dollars. With a unit cost of 18 dollars, the cost of the kept units is about 20,700 dollars, leaving roughly 30,100 dollars of gross profit, a margin near 59 percent.
Discount and returns rates are averages, so they smooth over promotions and seasonal swings; revisit them as your real data lands. For a primer on reading an income statement, the SEC beginners guide to financial statements is a clear, neutral source. To price a single product before modelling volume, try our profit margin calculator.
Gross revenue is units sold times price per unit, before any deductions. Net revenue is what remains after you subtract discounts given to customers and the value of goods that were returned or refunded. Net revenue is the more honest top line because it reflects money you actually keep.
Gross profit is net revenue minus the cost of the goods you actually sold. The calculator multiplies your per unit cost only by the units that were kept, not the ones returned, then subtracts that total cost from net revenue. Dividing gross profit by net revenue gives the gross margin percentage.
A returned unit means you give back the sale and usually do not incur the full cost of a kept sale, so the model removes returned units from both the revenue and the cost of goods. This keeps the margin realistic rather than punishing you twice for the same returned item.
No. This is a gross profit view that stops at the cost of goods sold. It does not subtract marketing, salaries, rent, shipping or income tax. To reach operating or net profit you would deduct those expenses separately from the gross profit shown here.

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