Profit and Loss Calculator — Free P&L Statement Tool

Profit Calculators

Profit & Loss Calculator
— Full P&L Statement

Build a complete profit & loss statement in seconds. Enter revenue, COGS, and operating expenses to get gross profit, EBIT, and net profit with a formatted P&L breakdown.

Free forever No signup Full P&L waterfall 3 margin types

📊 Profit & Loss Calculator

Fill in any fields you have — blank fields are treated as zero. All sections are optional except Revenue.

💰Revenue

REQUIRED

Total Revenue / Sales

Total sales income for the period

Other Income (optional)

Grants, interest income, one-offs

🏭Cost of Goods Sold (COGS)

EXPAND ▾

Total COGS (or use breakdown →)

Or enter line items on the right

Materials / Inventory

Direct Labour

Shipping & Fulfilment

If detail fields sum to more than the Total field, the sum is used.

🏢Operating Expenses

EXPAND ▾

Salaries & Wages

Rent & Utilities

Marketing & Advertising

Software & Subscriptions

Depreciation & Amortisation

Other Operating Expenses

📋Below the Line

EXPAND ▾

Interest Expense

Loan / debt interest

Tax Expense

Corporation / income tax

Other Non-Operating

Write-offs, one-off charges

P&L Summary —

Net Profit

—

Bottom line

Net Margin

—

% of revenue

Gross Profit

—

Before OpEx

EBIT

—

Operating profit

Gross Margin—

Operating Margin—

Net Margin—

📊 Profit & Loss Statement PERIOD SUMMARY

Revenue

Net Sales—

Other Income—

Total Revenue—

Cost of Goods Sold

Materials / Inventory—

Direct Labour—

Shipping & Fulfilment—

Total COGS—

Gross Profit—

Operating Expenses

Salaries & Wages—

Rent & Utilities—

Marketing & Advertising—

Software & Subscriptions—

Depreciation & Amortisation—

Other Operating Expenses—

Total OpEx—

Operating Profit (EBIT)—

Below the Line

Interest Expense—

Tax Expense—

Other Non-Operating—

Net Profit / (Loss)—

💡 —

Guide

What Is a Profit & Loss Statement?

A profit and loss statement (P&L), also called an income statement, is a financial report that summarises a company's revenues, costs, and expenses over a specific period. It shows exactly how revenue flows through the business — from top-line sales all the way down to bottom-line net profit.

Every business, from a freelancer to a public company, needs a P&L to understand whether they are actually making money and where it is going. It is one of three core financial statements alongside the balance sheet and cash flow statement.

The P&L Chain

Revenue − COGS = Gross Profit
Gross Profit − Operating Expenses = EBIT (Operating Profit)
EBIT − Interest − Tax = Net Profit

Each step removes a layer of costs. Net profit is what the business actually earned after every obligation is met.

Key Terms

P&L Line Items Explained

Line Item	What It Means	Where It Lives
Revenue	Total money received from sales	Top of P&L
COGS	Direct cost of producing/buying what you sold	Section 2
Gross Profit	Revenue minus COGS	Subtotal 1
Operating Expenses	Overhead: rent, salaries, marketing, software	Section 3
EBIT	Gross Profit minus OpEx (before interest & tax)	Subtotal 2
Interest Expense	Cost of debt — loan repayments, overdraft fees	Below EBIT
Tax Expense	Corporation or income tax payable	Below EBIT
Net Profit	What's left after everything — the true bottom line	Bottom

Benchmarks

What Do Healthy P&L Numbers Look Like?

Industry	Gross Margin	Op. Margin	Net Margin
SaaS / Software	70–85%	20–35%	15–30%
Consulting	70–90%	25–45%	30–50%
Ecommerce (DTC)	40–60%	10–20%	10–20%
Amazon FBA	30–50%	10–20%	10–25%
Retail — Apparel	50–60%	8–15%	5–12%
Restaurant	60–65%	5–12%	3–9%
Construction	15–25%	3–7%	2–6%
Grocery	25–35%	1–4%	1–3%

How Often

How Often Should You Run a P&L?

Monthly: Most businesses should produce a monthly P&L. It catches cost creep early, shows seasonal patterns, and gives you 12 data points a year to spot trends before they become problems.

Quarterly: Quarterly reviews are used to compare against budget, check year-on-year performance, and make strategic decisions like hiring or cutting spend.

Annually: The annual P&L is used for tax returns, investor reporting, and lender applications. It is the legal record of profitability.

For early-stage businesses, weekly P&L monitoring is common until cash flow is stable. A business that checks its P&L monthly is far less likely to be surprised by a loss at year end.

Expert Tips

6 Things to Check on Every P&L

Is gross margin stable or shrinking? A declining gross margin over time usually means COGS are rising faster than prices. It compounds quickly.
What is the ratio of OpEx to revenue? OpEx should grow slower than revenue. If they grow at the same rate, margins never improve.
Is EBIT positive? If EBIT is negative, the business loses money before even touching debt or taxes. That is a structural problem, not a financing problem.
What is the gap between gross margin and net margin? A large gap means high overhead. Narrow it by reducing fixed costs or growing revenue without adding headcount.
Are any expense lines growing faster than revenue? Salaries and marketing are common culprits. Each line should have a clear justification for its growth rate.
Compare to prior period. A single P&L tells you what happened. Two P&Ls tell you whether things are getting better or worse.

FAQ

P&L Statement — Frequently Asked Questions

What is the difference between a P&L and a balance sheet?+

A P&L shows performance over a time period — did you make or lose money? A balance sheet shows a snapshot in time — what you own (assets) vs what you owe (liabilities). Both are needed for a complete financial picture. Net profit from the P&L flows into retained earnings on the balance sheet.

What is the difference between P&L and cash flow?+

P&L is recorded on an accrual basis — revenue is recognised when earned, not when cash arrives. Cash flow shows actual money in and out. A business can show P&L profit while being cash-flow negative (e.g. unpaid invoices). Checking both avoids the dangerous illusion of "profit without cash."

What does a negative P&L mean?+

A negative net profit means total expenses exceeded total revenue — the business made a loss. This can be intentional in early-stage companies investing in growth, or it can signal a pricing or cost structure problem. Persistent losses without a clear path to profitability are unsustainable.

What is EBIT and why does it matter?+

EBIT (Earnings Before Interest and Tax) measures the profitability of core operations before financing decisions. Two businesses with identical operations but different levels of debt will show different net profits — EBIT removes that noise. It is the cleanest measure for comparing operational performance.

How is gross profit different from net profit?+

Gross profit = Revenue minus COGS only. Net profit deducts everything: COGS, all operating expenses, interest, and tax. A high gross profit but low net profit means the business has high overhead. Knowing both helps you understand whether to fix pricing (gross) or operations (net).

What should not be included in COGS?+

COGS includes only direct costs tied to producing or purchasing what you sell: raw materials, direct labour, packaging, and inventory cost. It does not include rent (unless it's production-specific), admin salaries, marketing, software, or management costs. Misclassifying OpEx as COGS inflates gross margin artificially.

How do I improve net profit margin?+

The most effective levers are: (1) raise prices — even 5% with unchanged costs significantly lifts margin, (2) reduce COGS — negotiate supplier rates or improve production efficiency, (3) control overhead growth — ensure OpEx grows slower than revenue, (4) cut low-margin product lines, (5) reduce debt interest by paying down loans.

Can gross profit be higher than revenue?+

No. Gross profit equals revenue minus COGS. If COGS is zero (e.g. a pure services business with no direct costs), gross profit equals revenue — giving 100% gross margin. It cannot exceed revenue because COGS cannot be negative in a normal business operation.

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