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Income Statement Calculator (P&L) | Toolivaa

Income Statement Calculator

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Calculate Your Company's Profitability

Input your financial data to instantly calculate Gross Profit, EBITDA, Operating Income, and Net Income.

1. Revenue and Cost of Goods Sold (COGS)

Direct costs attributable to the production of goods or services.

2. Operating Expenses

Marketing, salaries, rent, and other non-production operational costs.

Non-cash expenses.

3. Non-Operating Items and Tax

Cost of borrowing money (debt).

Enter as a percentage (e.g., 25 for 25%).

Income Statement Summary

Total Sales Revenue $0.00
- Cost of Goods Sold (COGS) $0.00
= Gross Profit $0.00
- SG&A Expenses $0.00
= EBITDA (Earnings Before D&A, Interest, Tax) $0.00
- Depreciation & Amortization $0.00
= Operating Income (EBIT) $0.00
- Interest Expense $0.00
= Earnings Before Tax (EBT) $0.00
- Income Tax Expense (0%) $0.00
= Net Income (Net Profit/Loss) $0.00

What is an Income Statement?

An Income Statement, also known as a Profit and Loss (P&L) Statement, is one of the three main financial statements used to report a company's financial performance over a specific period. It shows the company's revenues and expenses incurred during the period. The ultimate goal is to arrive at the company's Net Income or Net Loss (the bottom line).

It follows a waterfall structure, starting with top-line revenue and subtracting various categories of costs and expenses to reveal profitability at different stages.

Key Components of the Income Statement

The calculation performed by this tool uses the following structure:

  1. Revenue (Sales): The total money generated from core business activities.
  2. Cost of Goods Sold (COGS): Direct costs of producing the goods/services.
    • Result: Revenue - COGS = Gross Profit
  3. Operating Expenses (SG&A): Non-production costs like salaries, rent, and marketing.
    • Result: Gross Profit - SG&A = EBITDA (EBITDA is an estimate here)
  4. Depreciation & Amortization (D&A): Non-cash expenses for wear and tear on assets.
    • Result: EBITDA - D&A = Operating Income (EBIT)
  5. Non-Operating Items (Interest): Cost of debt financing.
    • Result: EBIT - Interest = Earnings Before Tax (EBT)
  6. Tax Expense: The cost of income tax.
    • Result: EBT - Tax Expense = Net Income

Why Use an Income Statement?

An income statement is vital for future planning and decision-making:

  • Budgeting: It forms the basis of annual budgets, showing expected revenue targets and spending limits.
  • Fundraising: Investors and lenders require financial statements to evaluate the viability and potential return of an investment.
  • Scenario Analysis: You can test different revenue or cost scenarios (e.g., "What if sales drop by 10%?") to understand their impact on the bottom line.
  • Break-Even Analysis: It helps in determining the sales volume needed to cover all expenses and start making a profit.

Example Calculation:

Using the default values in the calculator:

  • Revenue: $500,000
  • COGS: $200,000
  • SG&A: $150,000
  • D&A: $10,000
  • Interest: $5,000
  • Tax Rate: 25%
  1. Gross Profit = $500k - $200k = $300,000
  2. EBITDA (approx) = $300k - $150k = $150,000
  3. EBIT = $150k - $10k = $140,000
  4. EBT = $140k - $5k = $135,000
  5. Tax Expense = $135,000 * 25% = $33,750
  6. Net Income = $135,000 - $33,750 = $101,250

Plan your future profitability with Toolivaa's free Income Statement Calculator, and find more essential resources in our Business Calculators collection.

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