Forecasting your revenue or sales streams
The revenue stream form guides you on how to enter your revenue data so your financial forecasts reflect real-world performance. Choosing the right revenue forecasting model is important because it determines how revenue is calculated, displayed, and updated across your financial forecasting.
There are 5 ways to forecast revenue streams. You'll choose the type when you set up a revenue stream by clicking the appropriate option in the form:
Different business models require different forecasting approaches. Upmetrics supports five forecasting types. Each type of revenue stream is described briefly below. You can choose any of these forecasting models for any revenue stream in your plan and edit or delete it later.
Unit Sales: Choose this option if you want to enter the number of units you expect to sell, along with the price for each, and we will calculate the totals.
Charge Per Service: Choose this option if you want to enter the number of customers you expect to sell them, along with the service charges for each, and we will calculate the totals.
Recurring Charges: Use our subscription model to calculate the recurring revenue based on new signups, renewals, and cancellations.
Hourly Charges: Choose this option if your revenue stream is based on per-hour pricing.
Fixed Amount: Perfect for scenarios where your income remains the same each month, quarter, or year, such as rental payments or interest earnings.
How to Choose the Right Model
Choosing the right revenue model depends on how you charge your customers, not just what you sell. Before selecting a model, consider:
- Do customers pay once or repeatedly?
- Is pricing based on quantity, time, or a fixed fee?
- Does revenue grow by adding more customers, more usage, or both?
Use the guidance below to match your pricing structure with the most accurate forecasting model.
| Model | Use When... |
| Unit Sales | You sell physical or digital products where revenue depends on the number of units sold (e.g., products, licenses, downloads). |
| Charge Per Service | You charge a one-time fee per client, project, or service delivered (e.g., consulting jobs, installation services). |
| Recurring Charges | You earn subscription or membership revenue that repeats over time and may involve new signups, renewals, or cancellations. |
| Hourly Charges | You bill customers based on the number of hours worked (e.g., freelancers, agencies, contractors). |
| Fixed Amount | Your revenue remains consistent each period, with no dependency on volume or time (e.g., rent, interest income). |
Note: If your revenue includes multiple components, create separate revenue streams for each. This keeps forecasts accurate and makes it easier to adjust individual components later.