Build income statements with revenue, COGS, operating expenses, and net income calculations in standard P&L format.
The Profit & Loss Statement Builder arranges revenue, cost of goods sold, and operating expenses into the standard income statement layout: revenue on top, COGS subtracted to reach gross profit, then operating expenses subtracted to reach net income. You enter the figures and the tool applies the subtraction sequence and produces the statement. The surprise most users hit: the result is an accrual picture, not a cash record, and the bottom line depends entirely on how you classify costs. Put a one-time equipment purchase in operating expenses and net income drops, even though it is not really a recurring cost.
A concrete input and expected output from the current implementation.
Input
Revenue: 100,000 Cost of goods sold: 40,000 Operating expenses (rent, salaries, marketing, utilities): 25,000
Expected output
Revenue 100,000 Cost of goods sold 40,000 Gross profit 60,000 Operating expenses 25,000 Net income 35,000
COGS is subtracted from revenue first, giving gross profit of 60,000; operating expenses are then subtracted, giving net income of 35,000. Both figures follow directly from the inputs: 100,000 - 40,000 = 60,000 and 60,000 - 25,000 = 35,000.
The statement is assembled in one order: revenue minus cost of goods sold produces gross profit, and gross profit minus operating expenses produces net income. Figures land in the layout by the category you assign them, so moving a cost from one group to the other changes gross profit and net income even though total expenses stay the same.
The tool computes what you give it; it does not judge whether a figure belongs in COGS, in operating expenses, or in the period at all. Production materials and the labor that makes the product are COGS; rent, marketing, and administrative salaries are operating expenses. Wrong categorization produces a mathematically correct statement that misrepresents the business.
Because the P&L is an accrual statement: it counts revenue when it is earned and expenses when they are incurred, not when cash moves. Unpaid invoices count as revenue, and loan principal payments do not appear as expenses at all. Compare the statement against a cash-flow record, and check that every figure covers the same period.
You can, by entering projected figures instead of actuals, but the result is only as good as the assumptions. A forecast built by scaling last quarter's numbers assumes every cost moves in step with revenue, which is rarely true. Label the output clearly as a projection and treat it as an estimate, not a prediction.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
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