What is estimated revenue?
Estimated revenue represents projected earnings for a given accounting period, such as monthly, annual, or quarterly. The revenue is usually estimated from multiple sources during the accounting period.
How do you calculate estimated revenue?
To calculate estimated revenue and create a projection, you need to do the following steps:
- Define the number of sales you will sell in the next accounting period.
- Calculate the income that you can achieve
- Calculate possible expenses in the next period
- Subtract expenses from income (projected values)
- You will get estimated revenue.
The term “estimated revenue” usually implies that the final revenue will not be 100% accurate. For example, when YouTube estimates the income you can get next month, it creates an estimated projection, but the final number will differ.
What is YouTube’s estimated revenue?
YouTube’s estimated revenue is a projection of your payment based on estimated net revenue from ads on your videos. The YouTube estimated revenue is usually 98% accurate. However, false click deductions and other adjustments are possible, and future revenue can be different.
How do you find estimated revenue growth for an industry?
To find estimated revenue growth, do the following steps:
- First, calculate Revenue Growth Rate in Excel by subtracting the first-month revenue from the second-month revenue.
- In the next step, divide the result by the first month’s revenue and multiply by 100.
- Then, turn the number into a percentage.
- Do the same procedure every two months (any accounting period).
- Calculate estimated revenue growth as the average value of all percentage numbers.
After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management.
At Promtfinance.com, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification.
Read more on Daniel Smith's biography page.
Contact Daniel: daniel@promtfinance.com