Revenue calculator
Revenue is what the business earns from sales in a period, before any costs. For a VAT-registered business it excludes VAT: if your turnover figure includes it, divide by 1.2 at the standard 20% rate.
The formula
Revenue = turnover excluding VAT
Worked example: £50,000 a month
The example is a UK software company in one month: £50,000 of revenue excluding VAT, 400 customers and £180,000 in the bank.
- £50,000 a month × 12 = £600,000 a year
Work out your revenue
Until you type a figure, the results show an example business. Fill in only what you know: from then on every result uses your figures alone, and nothing you type leaves your browser.
Revenue for the example
Example£50,000
a month
- £50,000 a month × 12 = £600,000 a year
- 80% of it is recurring.
Formula: Turnover excluding VAT.
- A month
- £50,000
- A year
- £600,000
Everything your numbers show
For the example business: 29 of 29. Type your own figures to replace them. Select one for its page.
- Revenue£50,000a month
- VATValue added tax£6,000a month
- MRRMonthly recurring revenue£40,000a month
- ARRAnnual recurring revenue£480,000a year
- GMVGross merchandise value£250,000a month
- ARPUAverage revenue per user£119.62a month
- CACCustomer acquisition cost£300a customer
- LTVLifetime value£2,233a customer
- LTV:CACLifetime value to acquisition cost7.4:1
- Churn3.0%a month
- NRRNet revenue retention99.6%a month
- GRRGross revenue retention95.7%a month
- AOVAverage order value£111.11an order
- Gross margin70.0%
- EBITDAEarnings before interest, taxes, depreciation and amortisation−£4,000a month
- ROIReturn on investment30.0%
- YoYYear-on-year growth66.7%year on year
- MoMMonth-on-month growth6.4%month on month
- QoQQuarter-on-quarter growthNeeds quarterly figures
- Burn rate£9,000a month
- Runway20 months
- Operating cash flow−£7,000a month
- Profit and loss−£5,000a month
- Balance sheet£160,000Net assets
- Cash flow−£9,000a month
- COGSCost of goods sold£15,000a month
- OPEXOperating expenditure£39,000a month
- CAPEXCapital expenditure£2,000a month
- FTEFull-time equivalent8.0
How to read your result
Investors usually want revenue for the last 12 months and this month at a yearly rate, so both are shown. They look at recurring revenue separately from one-off sales, so the recurring share is shown too.
Watch out for
Money an investor puts in is not revenue, and nor is an invoice you will not be paid.
Last checked . Estimates only, not financial, tax or legal advice: check your accounts and documents, and take advice before you act. More terms in the startup glossary.