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Shop profit and loss calculator (daily or monthly)

Updated · free, no login

Shop profit = net sales − cost of goods sold − expenses, where cost of goods sold = opening stock + purchases − closing stock. Enter your sales, purchases, stock values and expenses for a day or a month to get gross profit, net profit, net margin and the sales you need to break even. Free, no sign-up.

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Sales, cost and expenses become net profit
Period

1. Sales and purchases (without GST)

Cash + UPI + card + udhaar sales, before GST.
Goods bought for resale, before GST.
At cost, at the start of the period.
At cost, at the end. Fill both for true profit.

2. Kharche (expenses)

3. Result

Net sales
₹25,000.00
Cost of goods sold
₹18,000.00
Gross profit (28%)
₹7,000.00
Expenses (12% of sales)
₹3,000.00
Net profit
₹4,000.00
Net margin
16%

You kept ₹4,000.00 today: 16% of every rupee of sales. Break-even sales at this margin: about ₹10,714.29.

Without opening and closing stock this treats all purchases as sold, so a day you stock up looks like a loss and a day you sell from old stock looks too good. Add stock values for the true figure.

How to use it

  1. Pick the period. One day for the evening hisaab, or one month for the real picture. A month is more reliable because stock bought one day is often sold over many days.
  2. Enter sales and purchases. Total sales (cash, UPI, card and udhaar) and purchases of goods for resale, both without GST, plus any sales returns.
  3. Add stock values. For true profit, enter the value of stock at cost at the start and end of the period. Cost of goods sold is then opening stock + purchases − closing stock.
  4. List your expenses. Rent, salaries, electricity, transport, packing and anything else the shop paid for in the period. Do not include goods bought for resale here.
  5. Read the result. Gross profit, net profit, net margin, expenses as a share of sales, and the sales you need to break even at your margin.

The profit and loss formula for a shop

LineFormulaExample (one month)
Net salesSales − returns₹7,50,000
Cost of goods soldOpening stock + purchases − closing stock₹3,00,000 + ₹5,80,000 − ₹3,25,000 = ₹5,55,000
Gross profitNet sales − cost of goods sold₹1,95,000 (26%)
ExpensesRent + salaries + power + other₹1,10,000
Net profitGross profit − expenses₹85,000 (11.33% net margin)

Figures in this example are illustrative. To price items for a target margin, use the profit margin calculator. Read more in profit and loss report for a retail shop and the break-even point of a shop. To grow sales, track your footfall conversion rate and average bill value.

Questions

How do I calculate a shop's profit and loss?

Net sales − cost of goods sold = gross profit. Gross profit − expenses = net profit. Cost of goods sold = opening stock + purchases − closing stock, all at cost. Net margin is net profit ÷ net sales × 100.

Why should I enter opening and closing stock?

Because purchases are not the same as goods sold. If you buy ₹50,000 of stock today and sell only ₹10,000 of it, counting all purchases makes today look like a big loss. With stock values the tool counts only the cost of what was actually sold.

Should I include GST in sales and purchases?

Not if you are GST registered. The GST you collect belongs to the government and the GST you pay on purchases comes back as input tax credit, so use amounts without GST. A composition dealer cannot claim input credit, so should include the GST paid in purchase cost.

What is break-even sales?

The sales you need for gross profit to just cover your expenses: expenses ÷ gross margin. With ₹4,500 of daily expenses and a 26% gross margin, you need about ₹17,300 of sales a day before you make any profit.

Is udhaar (credit) sale counted in sales?

Yes. A sale is income when you make it, even if the customer pays later. Track the unpaid amount separately so you know how much cash is stuck in udhaar.

Is the owner's own salary an expense?

For a true picture of the business, yes: add a fair salary for yourself as an expense. Otherwise a shop can look profitable while paying the owner less than a job would.

Is this the same as the P&L my CA prepares?

It is a simplified version for running the shop. Your CA's statement also handles depreciation, interest, bank charges, income tax and exact stock valuation. Use this to watch the business day to day, not for filing.

Related

Roz ka P&L bina calculator: RichPOS free trial

RichPOS records every sale and the purchase cost of every item, and shows profit & loss and stock valuation from your live billing, plus GST reports by HSN for your CA.

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