Incremental revenue: How do you calculate it in Excel?

Incremental revenue is the profit a business receives from a certain increase in sales. It's very easy to calculate - multiply the number of units sold by the price of one unit. Keep in mind that you should only account for the sales you made during a specific timeframe.

Excel is one of the most effective tools, especially for processing complex calculations. People frequently ask how to calculate incremental revenue in Excel. The process is pretty straightforward.

Incremental Revenue = Units sold * Price per unit

To calculate IR in Excel, follow these steps:

1. Open a new Excel workbook and name it "Incremental revenue analysis."
2. List all your relevant revenue assumptions.
3. In cell B2, compute the original revenue by multiplying the total units produced by their selling price.
4. Calculate the Adjusted Revenue in cell B3 by making various production and pricing assumptions.
5. Now take the differences between your original and adjusted revenue to compute your Incremental Revenue in cell B4.

Note: You can consider using BeProfit to track your expenses in one place and get the most accurate results.

Follow the given steps to calculate your incremental revenue in an Excel spreadsheet:

1. Create a simple outline for revenue and add the incremental costs from the B1 cell to the right.
2. Now add Revenue Cost starting from A2 to downwards.
3. Create equations by starting the first intersection of increment and cost. Type A2*B1 to direct Excel for the mathematic procedure.
4. Highlight the B2 cell and drag the black box towards the remaining costs at the bottom. Repeat the process for other rows to complete the worksheet.