Customer story
FREE TOOL
Income statement generator
Turn your revenue and costs into a profit and loss statement with gross profit, operating profit and profit before tax, and a comparative column if you want one. Download a PDF or an Excel file. Free, no sign-up, and nothing you type leaves your browser.
Business and period
Revenue
Sales for the period. Exclude VAT if you are VAT-registered.
Total revenue₦0.00
Cost of sales
The direct cost of what you sold: stock, materials, direct labour.
Total cost of sales₦0.00
Operating expenses
Running costs. Pick a category for each line; the statement totals by category.
Total operating expenses₦0.00
Other income
Income outside your main trade, such as interest received.
Total other income₦0.00
Other expenses
Costs outside normal operations, such as loan interest.
Total other expenses₦0.00
Tax line (optional)
This generator does not compute companies income tax. Choose a rate to apply to profit before tax, or enter a tax figure you already have.
Your income statement
Period not set · NGN. Figures in brackets are deductions or losses.
Gross profit₦0.00Gross margin —
Operating profit₦0.00Operating margin —
Profit before tax₦0.00
Profit for the period₦0.00Net margin —
| This period | |
|---|---|
| Revenue | |
| Sales | ₦0.00 |
| Services | ₦0.00 |
| Total revenue | ₦0.00 |
| Cost of sales | |
| Cost of goods sold | ₦0.00 |
| Gross profit | ₦0.00 |
| Operating expenses | |
| Total operating expenses | ₦0.00 |
| Operating profit | ₦0.00 |
| Profit before tax | ₦0.00 |
| Profit for the period | ₦0.00 |
Saved in this browser only. Nothing is sent to ereQa. The balance sheet generator on this device can import the profit for the period.
An income statement, also called a profit and loss account or P&L, shows what a business earned and spent over a period and what was left. This generator builds one from your own figures: revenue, cost of sales, operating expenses by category, and other income and expenses, with gross profit, operating profit and profit before tax worked out for you. Add a comparative column to set this year beside last year, then download it as a PDF or an Excel workbook.
How to use the income statement generator
- Enter the business name, the period (for example “Year ended 31 December 2026”) and the currency. Naira is the default.
- Tick “Show a comparative column” if you want last period beside this one.
- Add each revenue line: sales of goods, services, commissions. Use amounts excluding VAT if you are VAT-registered, because the VAT you charge is not your income.
- Add cost of sales: what you spent to make or buy what you sold, such as stock, raw materials and direct labour.
- Add operating expenses and pick a category for each. The statement groups them by category.
- Add other income (interest received, a one-off gain) and other expenses (loan interest, a one-off loss).
- Choose whether to show a tax line: none, a rate on profit before tax, or an amount you already know. Then download the PDF or Excel file.
What you type is saved in this browser only, so you can come back to it. The balance sheet generator on the same device can import the profit for the period from here.
How the statement adds up
- Gross profit = revenue − cost of sales
- Operating profit = gross profit − operating expenses
- Profit before tax = operating profit + other income − other expenses
- Profit for the period = profit before tax − tax
- Gross margin = gross profit ÷ revenue × 100; net margin = profit for the period ÷ revenue × 100
With the example loaded, revenue of ₦5,250,000 less cost of sales of ₦2,100,000 gives gross profit of ₦3,150,000 (a 60% gross margin). Operating expenses of ₦1,000,000 leave an operating profit of ₦2,150,000; add ₦30,000 of interest received and take off ₦80,000 of loan interest for a profit before tax of ₦2,100,000.
The facts: reporting rules and tax
- Under IAS 1, a complete set of financial statements, presented at least annually, includes a statement of financial position and a statement of profit or loss and other comprehensive income.
- IFRS 18 replaces IAS 1 for annual reporting periods beginning on or after 1 January 2027 (earlier application is permitted). It requires two defined subtotals in the statement of profit or loss: “operating profit” and “profit before financing and income taxes”.
- Profit in your accounts is not the same as taxable profit. Under section 21(g) of the Nigeria Tax Act, 2025 (gazetted text), depreciation or impairment of a fixed asset is not deductible; capital allowances under section 27 and the First Schedule are given instead. The depreciation and capital allowance calculator works out both.
- Section 56 of the Nigeria Tax Act, 2025 (gazetted text) charges companies income tax at 0% for a small company and 30% for any other company. Section 201 defines a small company as one with gross turnover of ₦100,000,000 or less a year and total fixed assets not exceeding ₦250,000,000.
- Section 59 imposes a 4% development levy on the assessable profits of companies other than small companies and non-resident companies.
The tax line in this generator only applies the rate or amount you choose. It does not compute companies income tax, the development levy or minimum tax, because those start from adjusted, assessable profit rather than the accounting profit shown here. Ask your accountant or tax adviser for the tax figure on a filed statement.
Sources, checked 2 November 2026: IFRS Foundation, IAS 1; IFRS Foundation, IFRS 18; Nigeria Tax Act, 2025, Official Gazette No. 117, Vol. 112 (sections 21, 27, 56, 59 and 201).
Keep going
Related tools and reading
Balance Sheet Generator
Set out assets, liabilities and equity, check that the balance sheet balances and see the difference if not…
Open the tool
Business Health Checker
Margins, current and quick ratio, debt to equity, receivable and payable days from your statements, each…
Open the tool
Depreciation and Capital Allowance Calculator
A year-by-year schedule: straight-line or reducing-balance depreciation, or capital allowances at the Nigeria…
Open the tool
Profit Margin Calculator
Calculate gross margin, markup, and profit from prices or target margins. Instant, free.
Open the tool
Nigeria Tax Calculator
Estimate Companies Income Tax, the 4% Development Levy, and 7.5% VAT under the Nigeria Tax Act 2025.
Open the tool
Financial reports
Profit and loss, expense breakdown and invoice summary, with exports for your accountant.
Read the guideQuestions
Frequently asked questions
Nothing in practice. Both show revenue, costs and the profit or loss for a period. “Statement of profit or loss” is the IFRS name; small businesses often say P&L.
Let your invoices and expenses
build the P&L for you.
ereQa’s reports show a monthly profit and loss from your paid invoices and recorded expenses, on every plan including Free, with expenses broken down by category. It counts revenue when an invoice is marked paid, and it has no balance sheet or report PDF yet; the data exports as CSV for your accountant.
