Profit & Loss Calculator
Build a simple profit-and-loss statement for your business: revenue, cost of goods sold, operating expenses and other income or costs, laid out as gross profit, operating profit and net profit.
Profit & Loss Statement
Sensitivity: Revenue
How net profit shifts if revenue changes, keeping all costs the same.
Sensitivity: Cost of Goods Sold
How net profit shifts if your cost of goods sold changes, keeping revenue and other costs the same.
Profit & Loss Calculator
Our Profit & Loss Calculator builds a simple profit-and-loss (P&L) statement for your business, showing how revenue flows down to gross profit, operating profit and net profit. Unlike a single-ratio tool, it lays out the full picture — revenue, cost of goods sold, a breakdown of operating expenses, and other income or costs — in the standard structure used in business reporting.
How the P&L Statement Is Built
This calculator works down through three profit levels:
- Gross Profit = Revenue − Cost of Goods Sold. This shows what’s left after the direct costs of producing what you sell.
- Operating Profit = Gross Profit − Operating Expenses (rent, salaries, marketing, utilities and other overheads). This shows profit from normal trading activity.
- Net Profit = Operating Profit + Other Income − Other Expenses. This is your bottom-line profit before tax.
How to Use This Calculator
- Choose a period – Monthly, Quarterly or Annual. This is a display label only; enter figures for whichever period you’re reporting on.
- Enter your revenue – total sales or turnover for the period.
- Enter your cost of goods sold – the direct costs of producing what you sold (materials, direct labour, etc.), if applicable.
- Enter your operating expenses – rent, salaries, marketing, utilities and any other overheads, broken out as separate lines.
- Enter other income or expenses – anything outside normal trading, such as interest received or one-off costs.
- Click Calculate to see your full P&L statement, margins, and sensitivity to changes in revenue or cost of goods sold.
Gross Profit vs Operating Profit vs Net Profit
| Profit Level | Formula | What It Shows |
|---|---|---|
| Gross Profit | Revenue − COGS | Profitability of what you sell, before overheads |
| Operating Profit | Gross Profit − Operating Expenses | Profitability of normal day-to-day trading |
| Net Profit | Operating Profit + Other Income − Other Expenses | Bottom-line profit before tax |
Worked Example
| Input | Value |
|---|---|
| Revenue | £10,000 |
| Cost of Goods Sold | £4,000 |
| Rent | £1,000 |
| Salaries & Wages | £2,000 |
| Marketing | £300 |
| Utilities | £150 |
| Other Operating Expenses | £50 |
| Other Income | £200 |
| Other Expenses | £100 |
| Gross Profit | £6,000 (60% margin) |
| Operating Profit | £2,500 (25% margin) |
| Net Profit | £2,600 (26% margin) |
What This Calculator Doesn’t Do
- It doesn’t calculate tax. All figures are before tax. For UK Corporation Tax on business profits, use our dedicated Corporation Tax Calculator; for sole traders, see our Self Assessment Tax Calculator.
- It doesn’t replace bookkeeping. This is a quick planning tool using the figures you enter — it doesn’t reconcile against invoices, bank statements or actual accounting records.
- It doesn’t handle depreciation, amortisation or accruals adjustments specifically — you can fold estimates for these into “Other Expenses” if relevant, but this calculator doesn’t apply any accounting standard automatically.
Frequently Asked Questions
What’s the difference between gross profit and net profit?
Gross profit only accounts for the direct cost of producing what you sell (cost of goods sold). Net profit accounts for everything — cost of goods sold, all operating expenses like rent and salaries, and any other income or costs — showing the profit remaining after the costs and other income included in this calculator, before tax.
Does this calculator include tax?
No. All figures shown are before tax. For UK Corporation Tax calculations, use our dedicated Corporation Tax Calculator; for Income Tax and National Insurance on self-employed profits, see our Self Assessment Tax Calculator.
What counts as cost of goods sold (COGS)?
Cost of goods sold typically includes the direct costs of producing what you sell — raw materials, direct labour, manufacturing overheads directly tied to production, or the wholesale cost of goods you resell. It excludes general overheads like rent or marketing, which are operating expenses instead.
What should I put under “Other Income” or “Other Expenses”?
These are for items outside your normal trading activity — for example, interest received on business savings, a one-off grant, or interest paid on a business loan. Regular trading revenue and normal running costs belong in the Revenue and Operating Expenses sections instead.
Can I use this for an annual P&L instead of monthly?
Yes. The period selector is a display label only — enter whatever figures correspond to the period you’re reporting on (monthly, quarterly or annual), and the calculator will build the statement accordingly.
Does this replace proper accounting software or an accountant?
No. This calculator is a quick planning and estimation tool based on the figures you enter. It doesn’t reconcile against your actual accounting records, apply accounting standards, or provide tax or legal advice. For statutory accounts, tax filings or formal financial statements, use proper accounting software or consult a qualified accountant.