# Gross Sale

What is gross sale?

Gross sale is the total amount of money generated by a business in sales before any expenses or deductions have been taken out. Gross sales are an important measure of a business's financial performance, as they provide a snapshot of how much money the business is generating through its operations.

Difference between gross sales and net sale

It is important to understand the distinction between gross sales and net sales, as net sales take into account deductions such as taxes, discounts, and returns. The gross sale represents the total monetary value of goods and services sold by a business during a particular period of time, such as a month or quarter, and can help determine the overall health of a company.

How to calculate gross sales?

Gross sale refers to the total sum of money received from a business transaction, excluding discounts and taxes. For example, if a company sells an item for INR 100 and allows a 10% discount, the gross sale would be INR 90 before any taxes are added.

Gross Sales Formula

The formula for calculating gross sales is:

Gross sales = number of units sold x selling price per unit

For example, if a business sells 100 units of a product for \$10 each, its gross sales would be 100 units x \$10/unit = \$1,000.