Track your business financial health with our free Profit & Loss Calculator. This essential tool helps entrepreneurs, small business owners, and financial managers calculate key profitability metrics including gross profit, net profit, and profit margins. Get instant insights to make smarter business decisions and improve your bottom line.
Get a quick snapshot of your business profitability with these essential financial inputs:
Generate a complete income statement with detailed financial breakdown for thorough analysis:
Gain clear visibility into your business's revenue streams, cost structures, and overall profitability with accurate calculations.
Monitor financial health over time by regularly calculating and comparing profit and loss statements across different periods.
Make informed business decisions about pricing, cost control, and growth strategies based on concrete financial data.
A Profit and Loss Statement (P&L) is a fundamental financial report that summarizes your business's revenues, costs, and expenses during a specific period. Here's how the calculations work:
Gross Profit = Total Revenue - Cost of Goods Sold (COGS)
Shows your basic profitability before accounting for operating expenses.
Operating Profit = Gross Profit - Operating Expenses
Reveals profitability from core business operations after accounting for overhead.
Net Profit = Operating Profit - Taxes - Interest
Your final bottom line after all business expenses have been deducted.
Profit Margins = (Profit / Revenue) × 100
Expresses profitability as a percentage of revenue for easy comparison.
For optimal financial management:
Regular P&L analysis helps identify trends and address issues promptly.
Profit margins vary significantly by industry:
Use our calculator to benchmark your performance against industry standards.