Insert the information in the form and the calculator will determine the net sales.

What is the net sales?

The net sales is the firm's revenue after making several deductions such as discounts and returns.

How to calculate net sales?

To calculate net sales you should use the following formula:
net sales = gross sales - sales returns - discounts - allowances
where:
gross sales = total units sold * sales price per unit

example: company x sold 145,000 units in the current year each unit is worth $7 and the sales return are $97,000, $60,000 worth of discounts and sales allowances of $31,000, what is the net sales of this company?

First we should get the gross sales.
gross sales = total units sold * sales price per unit
gross sales = 145,000 * $7
gross sales = $1,015,000
now let's calculate the net sales:
net sales = gross sales - sales returns - discounts - allowances
net sales = $1,015,000 - $97,000 - $60,000 - $31,000
net sales = $827,000

Why use net sales?

The net sales is used because it makes it easier to measure other financial health indicators, for example calculating the net sales can help in determining the gross profit margin and this can be done by deducting the cost of goods sold (COGS) from the net sales.