# P&L Template (Income Statement)

**What this is:** A structured Profit & Loss (P&L) template covering the major line items from revenue to net income. Designed for a SaaS or subscription business; adapt line items for other models.  
**Use for:** Monthly / quarterly financial reporting, budget-vs-actual tracking, board reporting.  
**Note:** The Excel version of this template includes formulas and built-in variance columns. This Markdown version is a structural reference.

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## How to read a P&L

The P&L answers: *did the business make money in this period, and at what stage of the business did money flow in or out?*

Reading top to bottom:
1. **Revenue** — what came in
2. **COGS** — the direct cost of delivering that revenue
3. **Gross profit** = Revenue − COGS — the margin from the core business activity
4. **Operating expenses** — costs of running the business (sales, marketing, G&A, R&D)
5. **Operating income (EBIT)** = Gross profit − OpEx — profit from core operations, before financing effects
6. **EBITDA** = EBIT + Depreciation + Amortization — a cash-flow-adjacent proxy frequently used in valuation
7. **Net income** = Operating income − Interest − Taxes — what's left after everything

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## P&L — [Company Name] — [Period]

*(Period: Month / Quarter / Year ending [date])*  
*(Currency: _______________)*  
*(Prepared by: _______________ | Date: _______________)*

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### REVENUE

| Line item | Current period | Prior period | YTD | Budget | Variance (Act vs Bud) |
|---|---|---|---|---|---|
| Subscription / recurring revenue | | | | | |
| Professional services | | | | | |
| Usage / variable revenue | | | | | |
| One-time / setup fees | | | | | |
| Other revenue | | | | | |
| **Total Revenue** | **—** | **—** | **—** | **—** | **—** |

**Revenue growth YoY:** ___%  
**Revenue growth MoM:** ___%

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### COST OF GOODS SOLD (COGS)

*Direct costs to deliver the product or service*

| Line item | Current period | Prior period | YTD | Budget | Variance |
|---|---|---|---|---|---|
| Hosting / infrastructure | | | | | |
| Third-party software / APIs | | | | | |
| Customer support (direct) | | | | | |
| Professional services delivery | | | | | |
| Other COGS | | | | | |
| **Total COGS** | **—** | **—** | **—** | **—** | **—** |

**Gross Profit** = Revenue − COGS: _______________  
**Gross Margin %** = Gross Profit ÷ Revenue: ___%  

*(Benchmark: SaaS gross margins typically 65–80%+; services businesses 30–50%)*

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### OPERATING EXPENSES (OpEx)

| Line item | Current period | Prior period | YTD | Budget | Variance |
|---|---|---|---|---|---|
| **Sales & Marketing** | | | | | |
| Salaries & benefits — Sales | | | | | |
| Commissions | | | | | |
| Marketing programs | | | | | |
| Events & travel | | | | | |
| **Subtotal Sales & Marketing** | **—** | **—** | **—** | **—** | **—** |
| **Research & Development** | | | | | |
| Salaries & benefits — Engineering | | | | | |
| Salaries & benefits — Product | | | | | |
| Tools & software — R&D | | | | | |
| **Subtotal R&D** | **—** | **—** | **—** | **—** | **—** |
| **General & Administrative** | | | | | |
| Salaries & benefits — G&A | | | | | |
| Legal & compliance | | | | | |
| Finance & accounting | | | | | |
| Facilities & office | | | | | |
| Insurance | | | | | |
| Other G&A | | | | | |
| **Subtotal G&A** | **—** | **—** | **—** | **—** | **—** |
| **Total OpEx** | **—** | **—** | **—** | **—** | **—** |

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### PROFITABILITY SUMMARY

| Metric | Current period | Prior period | YTD | Budget |
|---|---|---|---|---|
| Gross Profit | | | | |
| Gross Margin % | | | | |
| **EBITDA** | | | | |
| EBITDA Margin % | | | | |
| Depreciation & Amortization | | | | |
| **Operating Income (EBIT)** | | | | |
| Interest expense / (income) | | | | |
| Income tax | | | | |
| **Net Income** | | | | |
| **Net Margin %** | | | | |

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### HEADCOUNT (optional but useful alongside P&L)

| Department | Current | Prior period | Budget |
|---|---|---|---|
| Sales & Marketing | | | |
| R&D / Engineering | | | |
| G&A | | | |
| Customer Success | | | |
| **Total headcount** | **—** | **—** | **—** |

**Revenue per FTE:** _______________

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### COMMENTARY

**Revenue:** _______________

**Gross margin drivers:** _______________

**OpEx highlights:** _______________

**Key variances vs budget:** _______________

**Outlook for next period:** _______________

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*Covered in depth in the Financial Literacy Guide on biztechprimer.com.*