How to make a profit and loss statement in Excel
- Keep “Profit and loss statement” selected, set the year and currency.
- Add your company name if you want it on the sheet.
- Click Create, then fill in the yellow cells month by month.
A profit and loss statement (income statement) shows whether a business made money over a period: revenue, minus the cost of what was sold, minus operating expenses, minus tax. Small businesses, freelancers and side projects need one for the bank, for investors, for the accountant and simply to steer. This template lays it out month by month for a year, in the usual order.
You type your figures in the yellow cells: three revenue lines, three cost-of-sales lines, ten operating expense lines (rent, salaries, marketing, software, utilities, insurance, professional fees, travel, depreciation, other). Formulas compute total revenue, gross profit and gross margin, total operating expenses, operating income (EBIT), income tax at the rate you set, net income and net margin, with a Total column for the year and a “% of revenue” column. Losses turn red.
The result is a plain .xlsx with no macros that opens in Excel, Google Sheets, LibreOffice and Numbers. Rename lines to match your chart of accounts; if you add rows, extend the SUM ranges of the totals.
Frequently asked questions
What is the difference between a P&L and a balance sheet?
The P&L shows income and expenses over a period (a month, a year). The balance sheet shows what you own and owe at one date.
Can I change the tax rate?
Yes, cell B5 holds the rate used for income tax; set it to your own or to 0 to see pre-tax results only.
Can I add expense lines?
Yes. Insert rows inside a section and extend the SUM range of that section's total.
Does it work in Google Sheets?
Yes. The formulas (SUM, IF, MAX) work in Excel, Google Sheets, LibreOffice and Numbers.
Is it free?
Yes, free and without an account.