Total Revenue
Total income generated from sales of goods or services in a period
What is Total Revenue?
Total revenue is the sum of all closed deal values in a period. It is the top-line measure of what a business has sold.
Everything else in a sales plan is built on it, from targets and commissions to growth and profitability.
How this KPI is measured
- Function
- Sales
- Sub-function
- Revenue Management
- Industry
- All Industries
- Type
- Lagging
- Impact
- Revenue
- Unit
- $
- Measurement frequency
- Monthly / Quarterly
- Formula
- Sum of all closed deal values in period
How to calculate it
Add up the values of all closed deals in the period.
For example, if a business closed deals worth 2,400,000 in a quarter, total revenue is 2,400,000.
Use clear rules for when a deal counts, such as signature or invoicing, and reconcile with finance so the sales figure matches the accounts.
Where it is used
Tracking performance
Follow the top line.
Setting targets
Plan goals.
Reporting
Give a headline result.
How to improve it
Tips and common mistakes
- Sales bookings and recognised revenue can differ.
- Do not include cancelled deals.
- Read alongside profit.
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