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Finance

What is Gross Revenue?

Total revenue before returns, discounts and allowances.

How to calculate it

Calculate Gross Revenue as: Total sales before deductions. Pull the inputs from your connected data and track the trend over time in your dashboard.

Examples

Example 1

$1.05M billed before $50k of refunds and discounts -> $1.05M gross revenue.

Example 2

$1.05M is billed before $50k of refunds and discounts -> $1.05M gross revenue, which nets down to $1M after deductions.

Why it matters

Gross revenue is total revenue before returns, discounts and allowances and is the starting point for net revenue analysis. It shows the full top-line demand before deductions. Reporting gross as if it were net overstates performance and misleads stakeholders.

Benchmark context

Always reconcile gross to net revenue and track the net-to-gross ratio; a widening gap signals rising discounts or returns.

Common pitfalls

Reporting gross as if it were net.

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