What is Net Revenue?
Revenue after deductions from gross sales.
How to calculate it
Calculate Net Revenue as: Gross revenue − Returns − Discounts − Allowances. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
$1.05M gross minus $50k refunds and discounts -> $1M net revenue.
Example 2
$1.05M gross revenue minus $50k of refunds and discounts -> $1M net revenue, a 95% net-to-gross ratio.
Why it matters
Net revenue is revenue after returns, discounts and allowances and is the true top line for most analyses. It reflects the revenue the business actually keeps and is the basis for margin calculations. Inconsistent deduction definitions make net revenue hard to compare across periods.
Benchmark context
Track the net-to-gross ratio over time; a stable, high ratio indicates disciplined pricing and low returns.
Common pitfalls
Inconsistent deduction definitions.
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