Profit & Loss Calculator
Calculate net profit or loss, profit margin, and break-even from revenue and cost data.
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How to use this calculator
Gross profit is revenue minus cost of goods sold. Subtracting operating expenses gives EBIT. Tax is applied to positive EBIT only. The remainder is net profit or loss.
- 1
Enter your total revenue and the direct cost of goods sold (COGS).
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Add your operating expenses such as rent, salaries, and utilities.
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Set your applicable tax rate to see the full breakdown through to net profit or loss.
Frequently asked questions
What is the difference between gross profit and net profit?
Gross profit is revenue minus the direct cost of producing goods or services. Net profit further deducts operating expenses and taxes — it is the actual bottom-line profit.
What should be included in operating expenses?
Operating expenses (OPEX) include rent, utilities, salaries, marketing, insurance, and administrative costs — essentially everything except the direct cost of producing your product or service.
What does a negative EBIT mean?
A negative EBIT means the business is operating at a loss before accounting for interest and taxes. No tax is due on a loss, but the business is consuming more in costs than it earns.
Profit & Loss Calculator — Net Profit, Margins & EBIT
How to use the profit & loss
Use this profit & loss to net profit or loss, profit margin, and break-even from revenue and cost data. Enter your values above and get your result in seconds. The tool is free, works on all devices, and keeps your data private — nothing is stored or shared.
How the profit & loss works
The profit & loss calculator uses standard formulas used in business analysis, financial modelling, and commercial decisions. Enter your inputs, and the tool calculates the result instantly in your browser. No server-side processing means your data stays on your device. Results update in real time as you change inputs.
Why track profit margins regularly?
Profit margins reveal the efficiency of your business model. A high revenue business with thin margins can be more vulnerable than a smaller business with strong margins. Tracking gross margin separately from net margin helps identify whether cost problems lie in production or in overhead.
Using P&L data to make better decisions
Reviewing your profit and loss regularly lets you catch cost creep early, set realistic pricing, and determine whether growth is profitable. Many businesses boost revenue but erode margins in the process — the P&L statement is the single most important document for understanding a business's financial health.
Profit & loss: how it works
Business calculation tools cut through the complexity of commercial metrics, giving decision-makers fast, reliable figures. This tool is used by entrepreneurs, analysts, and students to model real-world business scenarios.
Who uses this tool?
Startup founders, business students, consultants, and finance teams use it to run quick commercial calculations and validate assumptions. It replaces ad hoc spreadsheets for common business metrics.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →