Our free Profit & Loss Calculator helps business owners, entrepreneurs, and accountants track financial performance. Calculate key metrics like gross profit, net profit, and profit margins to make informed business decisions and improve profitability.
Get a snapshot of your business profitability with essential financial inputs:
Generate a complete financial statement with comprehensive breakdown:
Understand exactly where your money comes from and where it goes with clear profit calculations.
Monitor financial health by comparing P&L statements across different periods.
Make data-driven choices about pricing, costs, and growth based on accurate numbers.
Understanding your P&L is crucial for business success. Here are the key formulas:
Gross Profit = Revenue - Cost of Goods Sold
Your basic profitability before overhead expenses.
Net Profit = Gross Profit - Operating Expenses
Your final bottom line after all costs.
Profit Margin = (Profit / Revenue) × 100
Shows profitability as a percentage of revenue.
Most businesses should run monthly P&L statements for regular financial health checks, with quarterly and annual reviews for strategic planning.
Profit margins vary by industry. Generally, 10-20% net margin is good, while 5-10% is average. Service businesses often have higher margins than retail.
Include all business-related expenses: direct costs, operating expenses, marketing, salaries, and any other costs associated with running your business.
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