Glossary /
Incremental Revenue

Incremental Revenue

Represents the additional profit generated by a business as a result of increased sales volume.

It quantifies the extra income gained from specific products, investments, or direct sales resulting from marketing campaigns that drive sales growth. When compared against the incremental cost of products, incremental revenue ensures profitability by surpassing associated costs. As it focuses solely on revenue gains without considering overhead expenses, businesses utilize incremental revenue to evaluate overall profit margins and assess the effectiveness of sales and marketing initiatives in driving financial growth.

Related Terms


Also called a warehouse club, it is a membership-based retail outlet offering a wide selection of

Just in time inventory

An inventory management that is focused on optimizing inventory levels by receiving raw materials and components

Unplanned Out-of-Stocks

Instances where a product is unexpectedly unavailable for purchase, often resulting in lost sales and dissatisfied