What is Incremental Revenue?
A definition of Incremental Revenue
“Incremental revenue refers to the additional income generated from a new investment, product, or sales activity, beyond the existing income levels. It is used to assess the profitability of business decisions.”

Business Glossary > What is Incremental Revenue?
Examples of Incremental Revenue in a Sentence:
The company realized incremental revenue after launching its new product line.
Investments in marketing efforts resulted in incremental revenue growth.
Managers analyze incremental revenue to evaluate the impact of strategic initiatives.
Why is Incremental Revenue Important in Business?
Understanding incremental revenue helps businesses evaluate the success of new strategies and investments. By comparing incremental revenue to incremental costs, managers can determine the profitability of specific initiatives, aiding in decision-making and future planning.
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Associated Terms
Here are some associated business terms and synonyms for “Incremental Revenue”:
- Additional Revenue
- Marginal Revenue
- Extra Income
Apple’s Incremental Revenue
Apple experienced significant incremental revenue with the launch of the iPhone. This new product generated additional income beyond their existing revenue streams and positioned Apple as a leader in the smartphone market.
Final Notes on Incremental Revenue
When evaluating incremental revenue, companies should consider the related costs to truly understand the profitability of an investment or strategy.
This analysis helps in refining future business decisions and resource allocation.
This has been a definition of Incremental Revenue meaning.
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