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)
- Net Profit Margin Calculator
- Cost of Goods Manufactured Calculator (COGM)
- Degree of Operating Leverage Calculator (+ Formula)
- Net Profit Calculator
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
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?
- First, determine the gross profit.
Determine the gross profit from the revenue and cost of goods sold.
- Next, determine the operating profit.
Calculate the operating profit using the sales, COGS, and operating expenses.
- Finally, calculate the net profit.
Calculate the net profit using the revenue and total expenses.
An income statement is a financial statement that displays the gross profit, operating profit, and net profit of a company.