Profit and Loss Calculator
Build a quick profit and loss statement from revenue, COGS and expenses — with gross, operating and net profit plus margins for each.
About the Profit and Loss Calculator
This profit and loss calculator turns four numbers — revenue, cost of goods sold, operating expenses and other expenses — into a clean mini P&L statement. It shows gross profit, operating profit and net profit in sequence, each with its margin percentage, so you can see exactly where money is made and lost.
The structure follows a standard income statement: gross profit = revenue − COGS (what's left after direct product costs); operating profit = gross profit − operating expenses (rent, salaries, marketing); net profit = operating profit − other expenses such as interest and tax. Margins divide each profit line by revenue, making businesses of different sizes comparable.
Use it for a monthly check-in on a small business, to sanity-check a business plan, or to see how a price increase or cost cut flows through to the bottom line. All figures stay in your browser.
How to Use the Profit and Loss Calculator
- 1Enter total revenue for the period.
- 2Enter cost of goods sold and operating expenses.
- 3Optionally add other expenses like interest and tax.
- 4Read the statement table with gross, operating and net profit and their margins.
Frequently Asked Questions
How do I calculate net profit? A worked example
With revenue of 120,000, COGS of 48,000, operating expenses of 35,000 and 5,000 of other expenses: gross profit = 120,000 − 48,000 = 72,000 (60% margin); operating profit = 72,000 − 35,000 = 37,000 (30.8%); net profit = 37,000 − 5,000 = 32,000, a 26.7% net margin.
What is the difference between gross, operating and net profit?
Gross profit only subtracts the direct cost of the products or services sold — it measures how profitable the offering itself is. Operating profit also subtracts overheads, measuring how profitable the business's operations are. Net profit subtracts everything, including interest and tax — it's what the owners actually keep.
What counts as COGS versus operating expenses?
COGS are costs that scale directly with each sale: materials, manufacturing, freight-in, payment processing on goods. Operating expenses stay roughly the same whether you sell 10 units or 100: rent, salaries, software, marketing, utilities. Classifying correctly matters because it changes your gross margin.
What is a good net profit margin?
It varies hugely by industry: grocery retail runs 1–3%, restaurants 3–9%, software often 20%+. Rather than one universal target, compare your margin against your own history and industry peers — a rising margin means efficiency is improving.
The result is negative — what does that mean?
A negative line means a loss at that level. Negative gross profit is the most alarming (you lose money on every sale); negative net with positive gross means overheads or financing costs are too heavy for current revenue — common in early-stage businesses.