gross sales measures a company s total sales without adjusting for the expenses of generating those sales the gross sales formula is calculated by totaling all sale invoices or related revenue transactions however gross sales do not include operating expenses tax expenses or other charges which are all deducted to calculate net sales 
gross sales formulathe gross sales figure is calculated by adding all sales receipts before discounts returns and allowances together the formula for gross sales is a simple equation that helps businesses calculate their total revenue before any deductions gross sales sum of all sales total units sold x sales price per unit let s consider a hypothetical tech company techxyz in a quarter it sells 10 000 units of its flagship product at 200 each applying the formula gross sales we get the following gross sales 10 000 units x 200 unitgross sales 2 000 000so the gross sales of techxyz for that quarter is 2 000 000 before considering business expenses deductions discounts returns and allowances 