Profit and Loss Statement Generator

How to use the profit and loss statement generator

1. Type your business name and the period the statement covers, such as January 2026 or Year ended December 31, 2026.
2. Add each source of money under Income, one row per line with an amount. Use a negative amount for refunds or discounts.
3. If you sell goods, add the direct costs under Cost of goods sold, such as materials and packaging. Leave that section empty if it does not apply.
4. List your running costs under Operating expenses, such as rent, software and advertising. The totals, gross profit, net income and margins update as you type.
5. Press Download PDF or Print for the statement, Download CSV for a spreadsheet, or Copy summary for a short text version.

How the statement is calculated

A profit and loss statement, also called an income statement, answers one question: over a period of time, did the business earn more than it spent? It starts with total income, subtracts the cost of goods sold to get gross profit, and then subtracts operating expenses to get net income. Net income is positive for a profit and negative for a loss.

Every amount is held in whole cents and added exactly, so there is no floating point drift. With income of 12,500.00 and 4,300.50, cost of goods sold of 3,200.00 and 410.25, and expenses of 2,400.00, 1,185.75, 149.99 and 600.00, total income is 16,800.50, gross profit is 13,190.25 and total expenses are 4,335.74, so net income is 8,854.51.

Margins show profit as a share of income. Gross margin is gross profit divided by total income, and net margin is net income divided by total income, rounded half up to two decimals. In the example, gross margin is 78.51 percent and net margin is 52.70 percent. A margin is shown as n/a when income is zero or negative, because the division would not mean anything.

What the statement does not do

This is a simple statement built from the numbers you enter. It does not decide what counts as income or an expense, it does not accrue or defer anything, and it knows nothing about depreciation, inventory changes, owner draws, interest or taxes. A tax return, a loan application or an audit needs figures prepared under the rules that apply to you, and often a qualified accountant. The result is useful for planning, a quick look at how a month went, or a first draft to hand to someone who will do the formal version.

Cash basis means recording money when it is received or paid, and accrual basis means recording it when it is earned or owed. The tool does not enforce either one. It simply adds what you type in each section, so decide which method you are following and enter your numbers consistently.

Privacy

Everything is calculated in your browser. Your figures are not uploaded, and the PDF and CSV are created on your device. If you tick Remember, the numbers are stored in this browser only and can be removed by unticking the box. For the margin on a single product, see the profit margin calculator.

Assumptions and limits

• Amounts are added exactly in cents. Each amount may have up to two decimals, and refunds or credits can be entered as negative numbers.
• The statement shows only what you enter. Depreciation, inventory changes, taxes, interest and owner draws are not modeled and not added automatically.
• Margins are net income and gross profit divided by total income, rounded half up to two decimals, and are shown as n/a when total income is not above zero.
• This is a simple planning statement, not accounting or tax advice, and it is not prepared to any accounting standard.

Formulas reviewed October 10, 2026. See the calculation methodology for how SumPanda rounds, tests and sources its formulas.

Frequently asked questions