Enter the total revenue, cost of goods sold, sales, operating expenses, and total costs into the calculator. The calculator will generate and display an income statement (Gross Profit + Operating Profit + Net Profit)

Income Statement Formula

The following 3 equations are used to calculate and generate an income statement.

Gross Profit = Revenue – Cost of Goods Sales 
Operating profit =  = Sales – COGS – Operating expenses
Net Profit = Revenue – All expenses

To calculate an income statement, calculate the gross profit, operating, profit, and net profit.

Income Statement Definition

An income statement generally includes 3 metrics. Those are gross profit, operating profit, and net profit. They are 3 key metrics for determining the true profitability of any company. The 3 of them together make a more complete picture than any single metric.

Income Statement Example

How to calculate an income statement?

  1. First, determine the gross profit.

    Determine the gross profit from the revenue and cost of goods sold.

  2. Next, determine the operating profit.

    Calculate the operating profit using the sales, COGS, and operating expenses.

  3. Finally, calculate the net profit.

    Calculate the net profit using the revenue and total expenses.


What is an income statement?

An income statement is a financial statement that displays the gross profit, operating profit, and net profit of a company.