Income statement template
An income statement with revenue, cost of goods sold, gross profit, operating expenses and net income, as a one-page summary and a 12-month Excel sheet.
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- Free
This is a sample form. Check tax amounts against IRS rules and your accountant's advice.
Fill in what you need. The preview updates as you type.
What you type is not saved on our server.
Match it to your books
A P&L is only as good as the numbers behind it. Pull totals from your bookkeeping software or bank export for the same period, use the same basis (cash or accrual) as last time, and let your accountant decide what counts as cost of goods sold.
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Income Statement
| Business | Lee Design Studio LLC | ||
|---|---|---|---|
| Period | Year ended December 31, 2026 | ||
| Prepared | October 22, 2026 | Basis | Accrual unless noted |
| Line item | Amount |
|---|---|
| REVENUE | ย |
| Design services | $148, |
| Print brokerage | $22, |
| Total revenue | $170, |
| COST OF GOODS SOLD | ย |
| Contract designers | $31, |
| Print vendor costs | $16, |
| Stock images and fonts | $2, |
| Total cost of goods sold | $50, |
| Gross profit | $120, |
| OPERATING EXPENSES | ย |
| Rent | $24, |
| Software subscriptions | $5, |
| Marketing | $7, |
| Insurance | $2, |
| Professional fees | $3, |
| Travel and meals | $4, |
| Total operating expenses | $47, |
| Net income (gross margin 70.6%, net margin 42.9%) | $73, |
How to use it
Pick the period, then type each revenue line, each direct cost and each operating expense as name | amount. The statement subtotals revenue and cost of goods sold, shows gross profit, subtracts operating expenses, adds other income and expenses and ends with net income before and after any tax you type. Print it as a one-page summary or take the Excel file, which spreads the same lines across the months of the period with a Total column and formula subtotals.
The amounts you type land in the Excel months as even placeholders. Replace them with the real monthly figures from your bookkeeping export and the subtotals, net income and net margin follow.
Things to watch
An income statement covers a span of time, so write the period in the heading the way a reader expects: Year ended December 31, 2026, or the quarter or month. Use the same basis you used last period, cash or accrual, and say which in the Basis cell. Loan principal, owner draws and equipment purchases are not expenses here; they show up on the balance sheet and the cash flow statement, so pair this with the balance sheet template when a lender asks for a full set.
Calculators that go with this
Frequently asked questions
Single-step or multi-step income statement?
A single-step statement adds up all revenue, subtracts all expenses and shows net income in one move. A multi-step statement stops along the way: gross profit after cost of goods sold, then operating income after operating expenses, then net income after other items and taxes. This template is multi-step, which is what lenders and most accounting software produce. If you want single-step, leave the cost of goods sold section empty and the statement reads top to bottom with one subtotal.
Cash or accrual?
Cash basis records money when it moves; accrual records sales when invoiced and costs when incurred. Most small businesses use cash basis for tax. Pick one and write it in the Basis cell so the reader knows.
What goes in cost of goods sold for a service business?
Costs that exist only because you delivered the work: subcontractors, materials billed through, software you resell. Rent, your own salary and marketing are operating expenses. Many pure service businesses leave the section empty.
Is what I type saved anywhere?
No. Everything stays in your browser and nothing is sent to our server. If you refresh the page it is gone, so print, save a PDF or download the DOCX when you are done.