1. Online Financial Calculator

A profit and Loss statement is one of the financial statements of a company that shows the company's revenues and expenses during a particular period. It indicates how the revenues are transformed into net profit or net loss. Calculator Web is an online business calculator tool with more than 70 calculators. One of these calculators is the profit and loss calculator, which helps calculate business profit and loss.

When is this tool used?

Some entrepreneurs find calculations a very hard task, especially at the early stages of their businesses when they don't have the full picture yet of their costs and revenues. This leads them to postpone their calculations. The Profit and Loss Calculator will help fill in the missing parts of the business’s income and expenses.

How is this tool used?

Step 1: Go to Calculator Web website.

Step 2: Choose Profit and Loss calculator, read the instructions given carefully, and then start filling the provided fields in the income and expenses fields. 

Step 3: In the Income category, add your total sales, the cost of sales (cost of goods sold), and the tax collected as per country regulations to get the gross profit/loss.

Step 4: List all your expenses expected incurred during the same period of the expected total sales (e.g., Monthly, Annually). You can also rename the fields as per the business expenses.

Step 5: When you finish adding all your expenses, the calculator will automatically determine your net profit.

Hints to using this tool

Calculator Web has 70+ calculators in different categories that you can use, including investment, finance, business, and more. It is advised to explore the other calculators, which you might need at the different stages of your business. 

Case Study

Nora is a chef who wants to build a startup that sells healthy meals for athletes. She went to Calculator web’s Profit and Loss (P&L) Calculator to explore her P&L estimates and to know whether she will be making a profit or losing money. 

She assumed that she would sell 200 meals per month, for 5 dollars per meal. So she put $1000 as the Total Sales. Then, she calculated the cost of these meals to be $400. She didn’t want to include tax calculations as she knows that her business is exempted from tax for the first year of operations. She found that her gross profit will be $600.

Next, she thought of all the expenses her business will incur monthly. She listed the following expenses:

• Accounting Fees: 10
• Advertising Fees: 10
• Bank Charges: 1
• Electricity & Gas: 20
• Legal Fees: 50
• Rent: 9
• Transport/Courier: 30
• Wages & Salaries: 80
• Other expenses: 50

Finally, the P&L calculator indicated her gross and net profit as follows:

Gross Profit: $600

Total Expenses: $260

Net Profit: $340

Now, Nora has a better idea of the profitability and cost structure of her business