Profit & Loss Calculator

Revenue less the costs that vary directly with what you sell (materials, direct labour, merchant fees on each sale) is the gross profit; its margin says how much of each sale is left to run the business. Subtract the operating expenses that exist whether or not you sell (rent, salaries, marketing, software) and you have the operating profit — the figure that tells you if the business model works. Tax at the rate you enter, on a positive operating profit, gives the net profit. Every margin is the line divided by revenue, and each expense line is also shown as a share of revenue so the largest drains stand out.

The split between cost of sales and operating expense is yours: a payroll that scales with orders may be a direct cost in one business and an overhead in another. Be consistent between periods so the margins are comparable. Interest, depreciation and one-off items can be entered as lines but the page does not classify them — it is a management view, not a statutory account.

No accounting standard, no depreciation schedule, no accrual timing and no tax law: the tax rate is a single percentage you enter, applied only to a positive operating profit, with no allowances, bands, losses carried forward or minimum taxes. For filing, use your accountant's figures. Nothing leaves the browser; the same four anonymous usage counts as the rest of the site apply.