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Profit and Loss (P&L) Calculator

Estimate Net Income, Gross Margin, and Operating Profit. Features dynamic expense rows and waterfall logic.

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Category Business & Trade

Income & Direct Costs

Operating Expenses

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About

A Profit and Loss (P&L) statement, or Income Statement, is the roadmap of a company's financial performance over a specific period. It tracks how revenue is transformed into net profit. This calculator allows small business owners and freelancers to model their bottom line by inputting Revenue, Cost of Goods Sold (COGS), and dynamic Operating Expenses.

The tool calculates key profitability metrics automatically: Gross Profit (Efficiency of production), EBIT (Earnings Before Interest and Taxes), and Net Income (The actual profit after all costs). Understanding these margins is essential for pricing strategies and expense management.

profit income statement accounting net income margin

Formulas

Gross Profit:

GrossProfit = Revenue − COGS

Net Income:

NetIncome = (GrossProfit − ∑Expenses) × (1 − TaxRate)

Reference Data

MetricDefinitionFormula
Gross ProfitProfit after direct material/labor costs.Revenue - COGS
Operating Income (EBIT)Profit from core business operations.Gross Profit - OpEx
Net IncomeFinal profit after taxes.EBIT - Taxes
Gross Margin %Percentage of revenue retained as Gross Profit.(Gross Profit / Revenue) * 100
Net Margin %Percentage of revenue retained as Net Income.(Net Income / Revenue) * 100

Frequently Asked Questions

COGS (Cost of Goods Sold) includes direct costs related to producing the goods sold by a company. This includes material costs and direct labor. It does not include indirect expenses like sales force salaries or distribution costs.
Operating Income (EBIT) is profit from regular business operations before tax and interest. Net Income is the final amount remaining after paying the government (taxes) and lenders (interest).