Profit & Loss Calculator

Calculate gross profit, operating profit, net profit, and margins from your revenue and costs.

Income & Expenses

Revenue ($)

Cost of Goods Sold / COGS ($)

Operating Expenses / OpEx ($)

Other Income ($)

Other Expenses ($)

P&L Statement

Revenue$250,000

— Cost of Goods Sold($100,000)

= Gross Profit$150,000 (60.0%)

— Operating Expenses($80,000)

= Operating Profit$70,000 (28.0%)

= Net Profit$70,000 (28.0%)

Break-Even Revenue

$133,333

Minimum revenue needed to cover all fixed and variable costs

Industry Benchmarks

Gross margin > 40% — healthy for most industries
Operating margin 10–20% — strong performance
Net margin 5–10% — typical for profitable businesses
SaaS often targets 70–80% gross margin

About Profit & Loss Calculator

The Profit & Loss Calculator helps business owners, accountants, and financial analysts quickly compute key profitability metrics — gross profit, operating profit, and net profit — along with their respective margins. Enter your revenue, cost of goods sold, operating expenses, and any other income or expenses to instantly generate a structured P&L statement. The break-even revenue figure shows the minimum sales needed to cover all costs. All calculations run locally in your browser — no data is sent to any server.

Built and maintained by Meet Shah · Last updated 30 July 2026

What this tool is used for

Working gross, operating and net profit from revenue and costs.
Seeing which cost category consumes the most margin.
Comparing two periods on margin rather than absolute profit.
Producing a simple statement for a small business.
Checking a reported margin against the underlying figures.

Frequently Asked Questions

What is the difference between gross and net profit?: Gross profit is revenue minus the direct cost of what was sold; net profit is what remains after every other expense — rent, salaries, marketing, interest, tax. A healthy gross margin with a negative net is the classic signal that overheads, not pricing, are the problem.
Why is margin calculated on revenue rather than cost?: Because margin and markup are different measures and mixing them is expensive. Buying at £60 and selling at £100 is a 40% margin and a 67% markup. A retailer quoting "40%" almost always means margin; a wholesaler often means markup, and the same product yields two prices.
How is percentage profit or loss calculated?: (Revenue − cost) ÷ cost × 100 for return on the money spent, or ÷ revenue for margin. The denominator is the whole question — the same £40 on £60 of cost is either a 67% return or a 40% margin, and both are correct answers to different questions.
Does break-even mean zero profit?: Zero accounting profit, yes — but not zero economic cost. The owner's unpaid time and the return the invested capital could have earned elsewhere are real costs that a break-even calculation ignores, which is why a business at break-even is losing money in the sense that matters.
Why can a profitable business run out of cash?: Because profit is recognised when a sale is made and cash arrives when it is paid. A business growing fast pays for inventory and wages before customers settle their invoices, so the faster it grows the wider the gap — which is how profitable companies fail.

Common errors and gotchas

Confusing gross with net profit, which differ by every cost below the cost of goods.
Misclassifying a cost, which moves profit between the levels without changing the total.
Ignoring tax, which sits between operating and net profit.
Comparing margins across businesses with very different cost structures.
Treating a positive profit as positive cash flow, which timing can make untrue.