Net revenue is what you keep from sales after discounts and refunds: gross sales minus discounts, returns and refunds. Here revenue is already after discounts, so net revenue is revenue minus refunds.
Net revenue = Revenue after discounts − Refunds
On the sample data below, six months come to ₹26,97,000.
Why it matters
Net revenue is the honest top line. Gross sales flatter a business with heavy discounting or many returns.
Worked example
The table shows the columns this metric needs from six months of a made-up subscription brand. Add each column up over the six months, then put the totals into the formula:
| Month | Revenue (net of discounts) | Refunds paid |
|---|---|---|
| 2026-01 | ₹4,12,000 | ₹18,500 |
| 2026-02 | ₹4,38,500 | ₹21,300 |
| 2026-03 | ₹4,71,200 | ₹19,800 |
| 2026-04 | ₹4,55,800 | ₹24,100 |
| 2026-05 | ₹5,02,300 | ₹22,600 |
| 2026-06 | ₹5,48,900 | ₹25,400 |
| Total | ₹28,28,700 | ₹1,31,700 |
₹28,28,700 − ₹1,31,700 = ₹26,97,000
Add up first, then divide. Averaging the six monthly figures gives a slightly different answer, because it counts a small month the same as a large one.
Month by month
| Month | Net revenue |
|---|---|
| 2026-01 | ₹3,93,500 |
| 2026-02 | ₹4,17,200 |
| 2026-03 | ₹4,51,400 |
| 2026-04 | ₹4,31,700 |
| 2026-05 | ₹4,79,700 |
| 2026-06 | ₹5,23,500 |
Net revenue calculator
How to read it
Report gross sales, discounts, refunds and net revenue together. The gaps between them are where money leaks.
Common mistakes
- Taxes collected (GST) are not revenue; take them out first.
- Accounting standards define net revenue more precisely than dashboards do. For filed accounts, use your accountant's figure.
- Refunds that relate to an earlier period shift revenue between months; that is a timing issue, not a trend.
Calculate net revenue in Excel, SQL or Python
The quickest version, for the sample sheet laid out as in the CSV (headers in row 1, months in rows 2 to 7):
=SUM(B2:B7) - SUM(E2:E7)- Net revenue in Excel and Google Sheets — per-month formula and zero-safe version
- Net revenue in SQL — query by month and for the period
- Net revenue in Python (pandas) — pandas script with expected output
Related metrics
See all business metrics, or the statistics methods that sit behind them.
Questions people ask
- What is net revenue?
- Net revenue is what you keep from sales after discounts and refunds: gross sales minus discounts, returns and refunds. Here revenue is already after discounts, so net revenue is revenue minus refunds.
- How do you calculate net revenue?
- Net revenue = Revenue after discounts − Refunds. For example, with six months of sample data: ₹28,28,700 − ₹1,31,700 = ₹26,97,000.
- What is the net revenue formula in Excel?
- With the sample data laid out as in the downloadable CSV, =SUM(B2:B7) - SUM(E2:E7) gives the figure for the whole period. For one month, use =B2 - E2 and fill it down.
- What is a good net revenue?
- There is no figure that is right for every business: it depends on your products, prices and channels. Report gross sales, discounts, refunds and net revenue together. The gaps between them are where money leaks.
Check how stable it is
A metric moves for ordinary reasons as well as real ones. These methods separate the two: the spread shows what a normal month looks like, the moving average smooths it, the z-score flags a month that is out of line and the trend line shows the direction.
Guides
About the data on this page
The figures come from a small made-up dataset, printed above in full so you can check every number by hand. Download it as monthly.csv. The results are computed from those rows when the page is built, and the Excel formulas, SQL and Python on these pages are run against the same rows before publishing, so the code and the answers agree.
To get these numbers from your own data without writing formulas, try AnalyzeIt: ask in plain words and it shows the working behind every figure.
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