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How to Calculate Percentages of Total Revenues

Original post by C. Taylor of Demand Media

A business' total revenue may be made up of several different departments. As an simplified example, revenue may be generated from both the sales and service departments of a company. Although total revenue gives you an overall snapshot of sales, it doesn't tell you what department generated the majority of this revenue. Calculating each department's percentage contribution to the total revenue gives you a better idea of each department's performance.

Contents

Step 1

Look at the company's balance sheet for total revenues and its breakdown for each department. For example, assume the company had total revenues of $500,000, $400,000 of which was produced by the sales department, while the service department contributed $100,000.

Step 2

Divide each department's revenue by the total revenue. In the example, the sales department's $400,000 is divided by $500,000 to produce 0.80. Likewise, the service department's $100,000 is divided by $500,000 to produce 0.20.

Step 3

Multiply these figures by 100 to convert them into percentage format. In the example, the sales department generated 80 percent of the total revenue, while the service department only contributed 20 percent.


                   

References

About the Author

C. Taylor has been a professional writer since 2009. He has written for online publications and the "Journal of Asian Martial Arts." Taylor specializes in martial arts, traveling, sciences and computer repair. He received a Master of Science in wildlife biology from Clemson University and a Bachelor of Arts in biological sciences from the College of Charleston.


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