Profit & Loss Statement Generator
Business information
Revenue
Cost of Goods Sold (COGS)
Operating expenses
Other income / expenses
Summary preview
Total revenue
$0.00
Gross profit (0.0%)
$0.00
Operating profit
$0.00
Net profit (0.0%)
$0.00
Create a clean, accountant-ready Profit and Loss statement for any business period without subscribing to accounting software. Enter your revenue lines, cost of goods sold, and operating expenses (payroll, rent, utilities, marketing, professional fees), and instantly see gross profit, operating profit, net profit, and both margin percentages. Download as a formatted PDF to share with your accountant, bank, or investors.
How to use this tool
- 1Enter your business name, the currency symbol you use ($ or any other), and the period the statement covers - for example January to December 2025 or Q2 2026.
- 2Enter your revenue line items. Each line has a description (e.g. Product sales, Consulting income) and the total amount for the period. Add as many revenue lines as you need.
- 3Enter your Cost of Goods Sold (COGS) items - the direct costs of producing what you sell. Leave this section empty if you have no direct costs (common for service businesses).
- 4Fill in operating expenses. Each category has its own field: payroll, rent, utilities, marketing, professional fees, and miscellaneous. Leave unused categories at zero.
- 5Optionally add other income (interest received, grants) and other expenses (loan interest, one-time costs) in the last section.
- 6Review the live summary showing gross profit, operating profit, and net profit with margin percentages. Click Download P&L PDF to generate and save the formatted statement.
Example
Business: Sarah Consulting. Period: January to December 2025. Revenue: Consulting fees $95,000. COGS: none (service business). Payroll: $0 (sole trader). Rent: $3,600 (home office). Marketing: $2,400. Professional fees: $1,800 (accountant). Miscellaneous: $1,200. Total operating expenses: $9,000. Gross profit: $95,000 (100% margin). Net profit: $86,000 (90.5% margin). The PDF downloads with all figures on one page in a clean financial statement format.
Business: Corner Store Ltd. Period: Q1 2026. Revenue: Retail sales $82,000, Online sales $14,000. Total revenue: $96,000. COGS: Wholesale stock $51,000. Gross profit: $45,000 (46.9% margin). Operating expenses: payroll $18,000, rent $4,500, utilities $800, marketing $1,200, professional fees $600, misc $400. Total opex: $25,500. Net profit: $19,500 (20.3% margin). The PDF shows a clean breakdown suitable for a bank loan application.
Common use cases
- Freelancers and sole traders producing an annual P&L for their accountant or tax filing without accounting software
- Small business owners preparing a P&L for a bank loan application or investor pitch
- Startup founders creating a simple monthly or quarterly P&L to track business performance
- Consultants or agencies producing a period P&L for a client on a project-based engagement
- Property investors summarising rental income and expenses for an annual property P&L
Common mistakes
- Confusing revenue with cash received - if you invoice on credit terms, revenue is earned when invoiced, not when the cash arrives; use your accruals-basis totals for a proper P&L
- Forgetting COGS for product businesses - if you buy goods to resell, the purchase cost is COGS and must be deducted before gross profit; omitting it overstates profitability
- Including personal expenses in business operating expenses - only business-related costs should appear; mixing personal and business costs produces an inaccurate P&L
- Using this statement as a tax return - this is a management P&L template and may differ from the figures required for your official tax filing, which may require adjustments not captured here
Frequently asked questions
What is a Profit and Loss statement?
A Profit and Loss statement (also called an income statement) is a summary of a business's revenues and expenses over a specific period. It shows how revenue is converted into profit (or loss) after deducting costs. The three key figures are gross profit (revenue minus cost of goods sold), operating profit (gross profit minus operating expenses), and net profit (operating profit plus or minus any other income or expenses).
What is the difference between gross profit and net profit?
Gross profit is revenue minus the direct costs of delivering what you sell (cost of goods sold). For a product business, this is revenue minus the cost of stock. For a service business with no direct costs, gross profit equals revenue. Net profit is gross profit minus all operating expenses and other costs. It is the actual bottom-line profit or loss for the period.
What is the difference between a P&L, a balance sheet, and a cash flow statement?
These are three different financial statements that together give a complete picture of a business. A P&L (income statement) shows revenue, expenses, and profit over a period of time. A balance sheet is a snapshot of what the business owns (assets) and owes (liabilities) at a single point in time. A cash flow statement shows actual cash moving in and out, which can differ from P&L profit because of timing differences such as unpaid invoices or loan repayments. For tax and compliance, all three are typically needed.
What is COGS and when do I include it?
COGS (Cost of Goods Sold) covers the direct costs of producing or delivering your product or service. For a product business, this includes materials, manufacturing, and wholesale stock. For a service business, it might include contractor costs or directly attributable labour. For many freelancers and pure service businesses, COGS is zero and gross profit equals revenue.
Can I use this P&L for a bank loan application?
Yes, this generator produces a formatted financial statement suitable for sharing with a bank or investor as a supporting document. However, lenders may also ask for audited or accountant-certified accounts, bank statements, or tax returns. This P&L is a useful starting point and overview document but may not replace official audited accounts for larger loan amounts.
Is my data saved?
No. All calculations and PDF generation run in your browser. Your business figures are never sent to a server or stored anywhere.
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