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Profit and loss statement template for small business

The short answer

A profit and loss statement shows income, minus direct costs for gross profit, minus other expenses for net profit, over a set period. On this page’s example numbers, $20,000 of sales less $10,000 of direct costs is $10,000 gross profit, a 50% margin. Less $5,500 of expenses, net profit is $4,500. Replace the numbers below with yours.

A one-page look at whether the business made money this month, quarter or year. The numbers come from your bank statements, invoices and receipts.

Checked November 5, 2026. How we make these tools

Enter the period’s numbers

The numbers here are examples. Replace them with yours.

Income
Direct costs
Expenses

Nothing is saved: print it or save the PDF before you close this page.

Your business name

Profit and loss statement

Period covered

Profit and loss
LineAmount
Sales$20,000
Other income$0
Total income$20,000
Materials and supplies$4,000
Job labor$6,000
Gross profit (50%)$10,000
Office wages$2,000
Rent$1,200
Insurance$500
Phone and software$300
Marketing$600
Vehicles and fuel$700
Other$200
Total expenses$5,500
Net profit (22.5%)$4,500

Prepared from the owner’s own numbers. Not reviewed or audited.

How it works

  • Gross profit = income − direct costs. Direct costs are what a job or sale takes, such as materials and job labor.
  • Net profit = gross profit − expenses. Expenses are what it costs to stay open, such as rent, insurance and office wages.
  • Margin = profit ÷ income × 100.

Getting the numbers

  1. Pick a period, such as last month.
  2. Add up what you billed or were paid.
  3. Add up the direct costs of that work.
  4. Add up everything else you spent.
  5. Use the same method each time, so one period compares fairly to the next.

Your owner’s pay and any loan payments are handled differently depending on how your business is set up, so ask your accountant. This template is a simple view for running the business. It doesn’t replace your books or tax return.

What to do with it

Low gross margin points to pricing: try the markup and margin calculator. Good gross margin with little left over points to overhead: the break-even calculator shows how many sales you need to cover it.

Common questions

How do I write a simple profit and loss statement?
Choose a period, list income, list direct costs to get gross profit, then list your other expenses to get net profit. The form above does the math.
What’s the difference between gross and net profit?
Gross profit is what’s left after the direct costs of the work. Net profit is what’s left after everything else too, such as rent and insurance.
Is there a profit and loss template in Excel?
This one isn’t a spreadsheet: you fill it in here and print it or save a PDF. Choose a spreadsheet, or bookkeeping software, if you want months to carry forward.
How often should I do one?
Monthly is a common habit, since you can still act on what it shows. Your accountant may want a yearly one for your taxes.
Do I need a profit and loss statement for a loan?
Lenders often ask for one, along with tax returns and bank statements. Ask what they need and who should prepare it. Many want it from your bookkeeper or accountant.
Is this template free?
Yes. No sign-up and no watermark. It runs in your browser, so nothing you type is stored or sent to us. Print it or save it as a PDF before you close the page.

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