Righto
Download nowGet it for Mac

Profit and loss statement template and generatorprofit and loss

Use it as a generator by typing your income and expenses into the statement below, where the totals add up as you go, or download it as an Excel template to fill in later. Either way you can save a clean PDF.

Published

Profit and Loss

Cash basis
AccountAmount
Income
Total income$0.00
Expenses
Total expenses$0.00
Net profit$0.00

Made for free with Righto

Nothing you type leaves your browser.

What is a profit and loss statement?

A profit and loss statement, also called a P&L or an income statement, shows what your business earned and what it spent over a period. Income goes at the top, expenses go under it, and the line at the bottom is your net profit: income minus expenses. When expenses are bigger, that line is a net loss.

Lenders, landlords and grant programs often ask for one, and it is the quickest way to see whether the business is making money. It is also most of the work for Schedule C if you are a sole proprietor in the US.

How to use the template and generator

  1. Add your business name and logo. Tap the square to add a logo. Without one, the statement shows your initials.
  2. Pick the period. A calendar year is most common, but a month, a quarter or year to date all work.
  3. Enter your income. Add up what customers paid you in the period, from your bank statements, and split it into a few lines if that helps.
  4. Enter your expenses. One line for each kind of cost: rent, software, contractors, advertising and so on. Rename or remove the starter lines as you need. The Schedule C categories are a good list to follow.
  5. Download it. The PDF is ready to send. The Excel file has the same lines plus empty rows and formulas, so you can keep it up to date.

A profit and loss example

A freelance designer had this year so far on the cash basis:

Income
Design projects48,200.00
Retainers12,000.00
Total income$60,200.00
Expenses
Contractors9,400.00
Software2,160.00
Office rent7,200.00
Advertising1,340.00
Total expenses$20,100.00
Net profit$40,100.00

The net profit of $40,100 is what the designer's self-employment tax and income tax start from. Net profit divided by income gives a net profit margin of about 67%.

A profit and loss statement for the self-employed

If you work for yourself, your P&L is often the only proof of income you have. A mortgage lender or a landlord usually wants a year-to-date statement plus your last tax return. Keep it simple: use the same period they ask for, take the numbers from your bank statements, and leave out money you moved to your personal account. That is an owner draw, not an expense.

What to do now

Fill in the statement above and download it. If you would rather not add up bank statements by hand every time, Righto is a free accounting app for Mac that sorts your transactions and builds this report for you, for any period, in the same layout.

Frequently asked questions

What is a profit and loss statement?

A one-page report of the money your business earned and spent over a period, such as a month or a year. Income at the top, expenses under it, and the difference at the bottom: your net profit, or a net loss.

Is a profit and loss statement the same as an income statement?

Yes. Profit and loss statement, P&L, income statement and statement of operations are names for the same report.

Can I use this as a self-employed profit and loss statement?

Yes. Put your business name (or your own name), the period, the money your clients paid you and your business expenses. Lenders, landlords and some benefit offices ask self-employed people for a year-to-date P&L to show their income.

What does cash basis mean?

You count income when the money arrives and expenses when you pay them. Most freelancers and small businesses use the cash basis, and it is what this statement shows.

Are owner draws or loan payments expenses?

No. Money you take out for yourself is an owner draw, and the part of a loan payment that repays the loan is not an expense. Only the interest on a loan is. Leave both out of the statement.

Does the Excel template add up by itself?

Yes. Each section has a total formula with empty lines inside it, and net profit is total income minus total expenses. It opens in Excel, Numbers and Google Sheets.