Free Profit and Loss Template (P&L Template)
Download CFI’s free Profit and Loss template (P&L template) to easily create your own income statement. After downloading the Excel file, simply enter your own information in all of the blue font color cells which will automatically produce a monthly or annual statement as the output.
The downloadable Excel file includes four templates. A Statement of Profit and LossProfit and Loss Statement (P&L)A profit and loss statement (P&L), or income statement or statement of operations, is a financial report that provides a summary of a (also called an Income StatementIncome StatementThe Income Statement is one of a company's core financial statements that shows their profit and loss over a period of time. The profit or) summarizes a company’s income and expenses for a period of time to arrive at its net earnings for the period.
Download the Free Template
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How to use the Profit and Loss Templates
Here are the steps to follow to effectively use your templates:
- Download the Excel file (see all free templatesExcel & Financial Model TemplatesDownload free financial model templates - CFI's spreadsheet library includes a 3 statement financial model template, DCF model, debt schedule, depreciation schedule, capital expenditures, interest, budgets, expenses, forecasting, charts, graphs, timetables, valuation, comparable company analysis, more Excel templates)
- Use the monthly or annual worksheet, depending on what type of statement you want to produce
- Replace all the blue cells that contain hard-coded numbers with your company’s information
- Double-check to ensure all the formulas in black cells are working properly
- Save as a new file and consider saving a version as PDF as well as XLS
The two types of templates included in the file are shown below.
#1 Monthly Profit and Loss Template (P&L Template)
The monthly P&L template is perfect for businesses that require regular reporting and detail. By showing all of the information in a series of monthly columns, much more detail is visible than if only the annual figures were shown.
The monthly profit and loss template is perfect for small, medium, and large businesses as it can easily be adjusted to add or eliminate detail as required. Learn more about monthly cash flow forecast modelingMonthly Cash Flow Forecast ModelWith a rolling monthly cash flow forecast model, the number of periods in the forecast remains constant (e.g., 12 months, 18 months, etc.)..
Fill out the form above to download the Excel file.
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#2 Annual Profit and Loss Template (P&L Template)
For businesses that have been in operation for several years, it may be helpful to show an annual (full fiscal yearFiscal Year (FY)A fiscal year (FY) is a 12-month or 52-week period of time used by governments and businesses for accounting purposes to formulate annual or year-to-dateYear to Date (YTD)Year to date (YTD) refers to the period from the beginning of the current year to a specified date. Year to date is based on the number of days from the beginning of the calendar year (or fiscal year). It is commonly used in accounting and finance for financial reporting purposes.) statement. The annual profit and loss template below follows the same format and structure as the monthly version, however, it doesn’t have a total column at the end that sums up each of the periods.
This template is ideal for any size business and can easily be changed by adding or removing line items (rows) as necessary. It is also useful for performing year-over-year (YoY) analysisYear over Year Analysis (YoY) TemplateThis Year over Year Analysis (YoY) template demonstrates how to perform a YoY analysis in financial data. YoY stands for Year over Year and is a type of.
Fill out the form above to download the free annual P&L template Excel file.
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Components of the Template
While each income statement is unique to every company, there are many common line items that you will see over and over again.
The most common P&L line items include:
- Revenue streamsRevenue StreamsRevenue Streams are the various sources from which a business earns money from the sale of goods or provision of services. The types of (also called sales streams)
- Returns, Refunds, Discounts
- Total Net Revenue
- Cost of Goods SoldAccountingOur Accounting guides and resources are self-study guides to learn accounting and finance at your own pace. Browse hundreds of guides and resources.
- Gross ProfitGross ProfitGross profit is the direct profit left over after deducting the cost of goods sold, or cost of sales, from sales revenue. It's used to calculate the gross profit margin.
- Advertising & Promotion
- DepreciationDepreciation ExpenseWhen a long-term asset is purchased, it should be capitalized instead of being expensed in the accounting period it is purchased in. & Amortization
- Rent and Office
- Salaries, Benefits & Wages
- Telecommunication
- Travel
- Utilities
- Selling, General & AdministrativeSG&ASG&A includes all non-production expenses incurred by a company in any given period. It includes expenses such as rent, advertising, marketing (SG&A)
- Earnings Before Interest & TaxesEBIT GuideEBIT stands for Earnings Before Interest and Taxes and is one of the last subtotals in the income statement before net income. EBIT is also sometimes referred to (EBIT)
- Interest ExpenseInterest ExpenseInterest expense arises out of a company that finances through debt or capital leases. Interest is found in the income statement, but can also
- Earnings Before TaxesEarnings Before Tax (EBT)Earnings before tax, or pre-tax income, is the last subtotal found in the income statement before the net income line item. EBT is found (EBT)
- Income TaxesAccounting For Income TaxesIncome taxes and their accounting is a key area of corporate finance. There are several objectives in accounting for income taxes and optimizing a company's valuation.
- Net EarningsNet IncomeNet Income is a key line item, not only in the income statement, but in all three core financial statements. While it is arrived at through
How to Modify the Profit and Loss Template (P&L Template)
All the CFI templatesExcel & Financial Model TemplatesDownload free financial model templates - CFI's spreadsheet library includes a 3 statement financial model template, DCF model, debt schedule, depreciation schedule, capital expenditures, interest, budgets, expenses, forecasting, charts, graphs, timetables, valuation, comparable company analysis, more Excel templates included in the free Excel file can be easily edited and changed to suit your own business.
If you require more line items, simply insert additional rows in the section where you need to add revenues or expenses. Then check to make sure the formulas adding up the totals capture those new rows.
If you need to remove line items from the templates, simply delete unnecessary rows and ensure all formulas are still working properly.
To learn more about the details of financial reporting, check out PWC’s free guide to financial statement presentation https://www.pwc.com/financial-statement-presentation.
Additional Resources
Thank you for checking out CFI’s free templates for making your own annual and monthly P&L statements in Excel. To keep learning and advancing your career as a certified financial analystDesignationsGuides to financial services designations. This section covers all the major designations in finance ranging from CPA to FMVA. These prominent designations cover careers in accounting, finance, investment banking, FP&A, treasury, IR, corporate development and skills like financial modeling,, these additional resources will be helpful:
- Analysis of Financial StatementsAnalysis of Financial StatementsHow to perform Analysis of Financial Statements. This guide will teach you to perform financial statement analysis of the income statement,
- What is Financial Modeling?What is Financial ModelingFinancial modeling is performed in Excel to forecast a company's financial performance. Overview of what is financial modeling, how & why to build a model.
- Valuation MethodsValuation MethodsWhen valuing a company as a going concern there are three main valuation methods used: DCF analysis, comparable companies, and precedent transactions
- DCF Financial Modeling GuideDCF Model Training Free GuideA DCF model is a specific type of financial model used to value a business. The model is simply a forecast of a company’s unlevered free cash flow
