Net Revenue
Nate Jewell avatar
Written by Nate Jewell
Updated over a week ago

What is Net Revenue?

  • Definition: Net revenue (aka. Gross Profit) computes what's left on the ‘bottom line’ calculated by subtracting the cost of goods sold from gross revenue.

  • In Plain English: Net revenue is what's leftover from your total sales after subtracting all expenses associated with the product.

  • Example: If you sold a pair of shoes for $100, and the shoes cost $40 to produce, the net revenue would be $60.

Why Should You Care?

  • Net revenue is your gross profit and shows you how much money you have leftover after paying all of your expenses related to getting the product to the customer.

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