For a profit and loss statement, start with Vertex42's free Income Statement template and change the title: Vertex42 says a profit and loss statement is simply another name for an income statement. If you want to look forward instead, its separate Profit and Loss Template builds a 3-year projection, and Template.net has profit and loss templates you fill in in your browser.
That naming muddle trips a lot of people up. Search for a profit and loss template and you'll often land on a projection, which is a plan, when what you wanted was a statement of what already happened. Both are useful. They're just different documents, and the free files are built for different jobs.
Statement, projection or budget: pick the right file
Vertex42 draws the lines clearly, so here's the comparison in its own terms:
| Document | Looks at | What Vertex42 says about it | Vertex42 file to use |
|---|---|---|---|
| Profit and loss statement | A past period | Another name for the income statement; the key value is net income | Income Statement, retitled |
| Profit and loss projection | The next 3 years (or months, if you relabel the columns) | Should be as realistic as possible | Profit and Loss Projection |
| Business budget | A future period | Usually more conservative than the projection | Business Budget |
Vertex42 calls the difference between a budget and a projection subtle but important. You could take a finished projection and change its title to Budget, but its author says his own budget is much more conservative than his projection. That's a useful habit: plan on the realistic number, spend on the cautious one.
Single-step or multi-step layout
The Income Statement template holds two worksheets. The single-step version groups all revenues and all expenses together (except income tax), which Vertex42 says suits small service businesses. The multi-step version breaks out gross profit and operating income as separate lines, which suits retail, because cost of goods sold is one of a retailer's main expenses.
The Profit and Loss Projection workbook makes the same split another way, with one worksheet for a business providing services and one for a business selling goods; the Goods sheet adds a cost of goods sold section for inventory and purchases. Both use the same categories as Vertex42's business budget and add Percentage of Total Sales columns, which help you see how cost of goods sold and operating expenses compare with sales.
How the lines flow from sales to net income
- Enter revenue. The template has lines for sales revenue, service revenue, interest revenue and other revenue; Vertex42 suggests customising this section around how you earn.
- If you sell goods, subtract cost of goods sold from net sales to get gross profit.
- List operating expenses such as advertising, salaries, rent, utilities, insurance, supplies and maintenance. Leave interest and income tax out of this block.
- Subtract operating expenses from gross profit to get operating income, also called EBIT, earnings before interest and taxes.
- Subtract interest and income tax, and add or subtract any non-operating items, to reach the bottom line. With no below-the-line items, that's net income.
If you'd rather understand each formula by building it yourself, see how to build an income statement in a spreadsheet.
Cost of goods sold, if you sell products
Vertex42 gives the calculation in one line: add beginning inventory, goods purchased and, if you make what you sell, raw materials and direct labour, then subtract ending inventory. For a service business it says cost of goods sold might not be a large factor, which is why the single-step sheet has no separate section for it. If you run a salon or an agency, don't force a product layout onto a service business.
Template.net's online profit and loss templates
Template.net describes its profit and loss templates as documents you complete or modify directly in the browser, with downloads in Excel, Google Sheets, PDF and Word as of October 2026. Its listings are sorted by business type, so you'll find restaurant, salon, ecommerce, construction, rental, real estate and independent contractor versions, plus weekly and projection layouts.
Its completion tips are worth taking: record every income stream, categorise expenses clearly, update regularly and use clear headings for revenue, cost of goods sold and operating expenses. It also has an AI tool for drafting a profit and loss template, and says you should check the figures and customise the result yourself, which is the right warning.
Small print on the Vertex42 files
Vertex42's Income Statement and Profit and Loss Projection are both labelled Private Use, not for distribution or resale, as of October 2026. Use them in your own business and share them privately with the people in your company who need them, but don't post the file on your website or share it with a public link. Both pages also carry a disclaimer that the spreadsheet is for illustrative and educational purposes only and that you should get qualified professional advice on financial decisions.
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When you run a small business, the P&L is the statement that tells you whether the work is making a profit at all. In the projection, the Percentage of Total Sales columns are the quickest way to spot a cost that's growing faster than sales.
My advice
I'd use Vertex42's Income Statement, renamed, if you need a profit and loss statement for last year, and the multi-step sheet if you sell products. I'd only reach for the Profit and Loss Projection if you're planning ahead or writing a business plan. Skip the projection if what you need is a cash picture: profit isn't cash, and a cash flow forecast template answers that question better. For your spending plan, a monthly budget template keeps the cautious numbers separate from the realistic ones.
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Frequently asked questions
Where can I get a free profit and loss template?
Vertex42 has a free Income Statement template you can retitle as a profit and loss statement, plus a separate 3-year Profit and Loss Projection. Template.net has profit and loss templates you edit in your browser.
Is a profit and loss statement the same as an income statement?
Yes. Vertex42 says a profit and loss statement is another name for the income statement, and suggests using its income statement template with the title changed.
What is the difference between a profit and loss projection and a budget?
Vertex42 says a projection should be as realistic as possible, while a budget is usually more conservative. A statement looks back at a past period.
Should I use a single-step or multi-step layout?
Vertex42 suggests single-step for small service businesses and multi-step for retail, because multi-step breaks out cost of goods sold, gross profit and operating income.
How do you work out cost of goods sold?
Vertex42 adds beginning inventory, goods purchased and, for manufactured goods, raw materials and direct labour, then subtracts ending inventory.
