Enter your revenue, cost of goods sold and running costs for one period. The tool works out gross profit, operating profit and net profit with their margins, and lays them out as a printable profit and loss statement.
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Updated November 2026
A simple single-period statement built from figures you enter. It does not calculate tax and is not a substitute for accounts prepared by an accountant.
For example income tax or corporation tax
From your tax return or accountant. Leave blank to show profit before tax only.
For example: unaudited, cash basis, prepared from bank records
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Net profit
$19,100.00
Total revenue
$135,000.00
Gross profit
$83,500.00
Gross margin
61.9%
Operating profit
$24,800.00
Operating margin
18.4%
Net margin
14.1%
Statement preview
Your business name
Profit & loss
Amounts in USD
Revenue
Product sales
$120,000.00
Service income
$15,000.00
Total revenue
$135,000.00
Cost of goods sold
Stock purchased for resale
$42,000.00
Packaging and outbound shipping
$9,500.00
Total cost of goods sold
($51,500.00)
Gross profit
$83,500.00
Gross margin
61.9%
Operating expenses
Rent
$18,000.00
Wages
$30,000.00
Marketing
$6,500.00
Software and subscriptions
$2,400.00
Insurance
$1,800.00
Total operating expenses
($58,700.00)
Operating profit
$24,800.00
Other income and expenses
Bank interest received
$300.00
Loan interest
($1,200.00)
Net other income
($900.00)
Profit before tax
$23,900.00
Income tax
($4,800.00)
Net profit
$19,100.00
Net margin
14.1%
How to use the profit and loss statement generator
1Enter your business name and the period the statement covers, for example a month, a quarter or a year.
2Add your revenue lines, then the cost of goods sold: the direct cost of what you sold in that period.
3Add operating expenses such as rent, wages, marketing and software. Add other income or expenses, such as interest, if you have any.
4If you know the tax for the period, enter it from your tax return or accountant. The tool does not calculate tax.
5Check gross margin, operating profit and net margin, then click "Save as PDF or print" for a clean statement.
How a profit and loss statement is laid out
A profit and loss statement (P&L), also called an income statement, shows what a business earned and spent over a period and what was left. It always runs in the same order: revenue at the top, then costs taken off in stages, each stage giving a profit figure that answers a different question.
Gross profit tells you whether your products or services make money before overheads. Operating profit tells you whether the business as a whole makes money from its normal trading. Net profit is what is left after everything, including interest and tax.
Gross profit = Revenue − Cost of goods sold
Operating profit = Gross profit − Operating expenses
Profit before tax = Operating profit + Other income − Other expenses
Net profit = Profit before tax − Tax
Gross margin and net margin
Margins turn profit into a share of revenue so you can compare periods and businesses of different sizes. A shop with a 60% gross margin keeps 60 cents of every dollar of sales after paying for the stock. If its net margin is 14%, overheads, interest and tax take the other 46 cents.
A falling gross margin points to rising supplier costs, heavier discounting or a change in what you sell. A healthy gross margin with a thin net margin points to overheads.
Gross margin % = Gross profit ÷ Revenue × 100
Net margin % = Net profit ÷ Revenue × 100
Cost of goods sold or operating expense?
Cost of goods sold (COGS), called cost of sales in the UK, covers costs that rise with each sale: stock or materials, packaging, outbound shipping and per-sale payment or marketplace fees. Operating expenses are the costs of running the business whatever you sell that month: rent, salaries, marketing, insurance, software and depreciation.
For a product business, COGS is strictly the cost of the stock you sold, not the stock you bought. If your stock level changed a lot during the period, work it out as opening stock plus purchases minus closing stock. Service businesses often have little or no COGS.
COGS = Opening stock + Purchases − Closing stock
What this tool is and is not
This is a simple single-period statement built from figures you enter. It is useful for a monthly review, a lender or landlord who asks for a summary, or a quick check on how the year is going. Negative figures are shown in parentheses, the usual accounting style.
It is not a substitute for accounts prepared by an accountant. Formal accounts may need accrual adjustments, depreciation schedules and a set format required by law or by your tax authority, and the rules differ between the US, Canada, the UK and the EU. The tool never calculates tax: enter the amount from your own records, or leave it blank to show profit before tax.
Worked example
A small online shop with some service income prepares a P&L for the year. Its tax figure comes from its accountant, not from this tool.
Revenue ($120,000 sales + $15,000 services)
$135,000.00
Cost of goods sold ($42,000 stock + $9,500 packaging and shipping)
The shop keeps $19,100 of $135,000 in sales. Its products earn a strong 61.9% gross margin, and overheads of $58,700 are what bring that down to a 14.1% net margin.
Frequently asked questions
Is a profit and loss statement the same as an income statement?
Yes. Profit and loss statement, P&L, income statement and statement of operations all mean the same report: revenue minus expenses over a period. UK accounts often call it a profit and loss account.
What is the difference between gross profit and net profit?
Gross profit is revenue minus the direct cost of what you sold. Net profit is what remains after all other costs too, including rent, wages, interest and tax. Net profit is always the smaller of the two unless you have large other income.
Can I use this P&L for my tax return or a loan application?
It can support a conversation with a lender or landlord, and many ask for a simple P&L. For a tax return, or when a lender asks for formal or accountant-prepared accounts, use your bookkeeping software or an accountant. Requirements differ by country and lender.
Should I prepare my P&L on a cash or accrual basis?
Cash basis records income and costs when money moves; accrual basis records them when they are earned or incurred. Cash basis is simpler and allowed for many small businesses, but the rules depend on your country and size. Whichever you use, use it every period and note it on the statement.
Why are some numbers in parentheses?
Parentheses are the usual accounting way to show a negative number or a cost being taken off. ($4,800.00) means minus $4,800. A net loss is also shown in parentheses.
Where do refunds and discounts go?
Take them off revenue. Add a revenue line such as "Refunds and returns" with a negative amount, so total revenue shows what you actually kept from sales.
Last reviewed November 2026. Results are estimates for general information, not financial, tax or legal advice. How we check our tools.