This income statement calculator can generate your income statement report in seconds based on your information. Hope you record your transactions with proper journal entries. Now to generate your income statement report, enter your net income, then enter the direct costs associated with the production of goods sold. Then, enter all your operating and non-operating income and expenses.
Please note that we do NOT store or sell the information you used with this calculator.
What is an Income Statement?
The income statement plays a vital role in accounting. It is also known as the Profit and Loss statement, which summarizes all revenues, expenses, profit, or loss over a specific period. It provides detailed insight into your company’s financial performance and displays how revenues from various sources are transformed into profit or net income.
What is Operating Profit?
Operating profit or operating income represents a company’s earnings from its direct business operation, excluding any income or expenses not directly related to its day-to-day activities. We calculate the operating expenses by subtracting the operating expenses from the gross profit.
The formula for calculating Operating Profit is:
- Operating Income=Gross Profit−Operating Expenses
- Operating Income=Gross Profit−Operating Expenses
Where:
- Gross Profit = Revenue – Cost of Goods Sold (COGS)
- Operating Expenses include costs like rent, salaries, utilities, and depreciation.
What is Non-operating Profit?
Non-operating profit or non-operating income indicates any income that a business earns from activities that are not directly related to the core business operation. These earnings are typically defined as incidental revenues, like profit on sales of an asset, or regular income, like interest on investments.
Examples of non-operating income include:
- Interest income from investments.
- Dividends from stock holdings.
- Gains from selling assets (e.g., selling property or equipment).
- Foreign exchange gains or losses.
So after figuring out the operating profit/losses and non-operating profit/losses, we calculate the income statement by adding the non-operating profit/losses to the operating profit/losses.
How Does the Income Statement Calculator Work?
This automatic accounting tool is capable of calculating the income statement and report generation. We use rules and formats defined by IFRS for income statements and comprehensive income statements. It depends on the data you input. So you have to enter your data or monetary value carefully. You can add or remove items where necessary. Hit the “Calculate” button when you are done. After the income statement is generated, you can print it directly.