Net Revenue
/ˌnɛt ˈrɛvəˌnuː/
Definitions
- (n.) The total income remaining after deducting returns, allowances, and discounts from gross revenue, often used in contracts and financial statements.
The contract specifies that royalties will be calculated based on net revenue rather than gross sales.
Related terms
See also
Commentary
In legal drafting, specifying net revenue rather than gross revenue clarifies the basis for financial calculations, reducing disputes over deductions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.