Annual Profit and Loss Statement Calculator

Want to start your own business? Many people do—over 500,000 new businesses opened their doors in 2009 alone. But the reward of owning your own business also comes with risk; that same year, over 600,000 businesses closed.

Running a business isn't about how much money you make—it's about how much you keep. Business owners have to pay for the cost of the products they sell, their employees' wages and benefits, the rent for their building, payroll taxes and fees—and then they get to keep what's left over.

For a restaurant or grocery store—establishments that most of us visit on a weekly basis—the "left over" is often quite small. How much do you think you would make if you ran a restaurant or grocery store?

Give it a try. Use the sliders to select an amount for each category. When you have finished filling out the form, click the "Show Real Numbers" button at the bottom to see the actual numbers. If you are unsure what a particular line item is, click the help button to see a description.

Click a link from the list below to try running an example restaurant*:

Steakhouse

  Your Answers Correct Answers
Food Sales Total amount paid by customers for the food they purchased.Total amount paid by customers for the food they purchased.
$
 
Beverage Sales Total amount paid by customers for beer, wine and liquor. If there are no liquor sales, soft drinks would be included. Sales of coffee, tea, milk and fruit juice are included in food sales.Total amount paid by customers for beer, wine and liquor. If there are no liquor sales, soft drinks would be included. Sales of coffee, tea, milk and fruit juice are included in food sales.
$
 
Total Sales   $ 600,000
 
 
Food Cost The grocery bill. What the restaurant pays to its suppliers for its food ingredients.The grocery bill. What the restaurant pays to its suppliers for its food ingredients.
$
 
Beverage Cost What the restaurant pays for beer, wine and liquor.What the restaurant pays for beer, wine and liquor.
$
 
Total Cost of Goods    
 
Gross Profit    
 
 
Salaries/Wages (including benefits) The payroll. This includes all wages, salaries, health insurance, vacation pay, employer’s part of Social Security (FICA) taxes, unemployment and workers’ compensation taxes. This does not include tips or the taxes deducted from the employees paycheck.The payroll. This includes all wages, salaries, health insurance, vacation pay, employer’s part of Social Security (FICA) taxes, unemployment and workers’ compensation taxes. This does not include tips or the taxes deducted from the employees paycheck.
$
 
Direct Operating Expenses Expenses directly related to providing customer service. They include the cost of: uniforms, laundry, linen, china, cleaning and paper supplies, decorations, parking, licenses, permits, and contract cleaning.Expenses directly related to providing customer service. They include the cost of: uniforms, laundry, linen, china, cleaning and paper supplies, decorations, parking, licenses, permits, and contract cleaning.
$
 
Marketing Includes all selling and promotional expenses, such as the costs of: newspaper, radio, television and magazine ads. Includes all selling and promotional expenses, such as the costs of: newspaper, radio, television and magazine ads.
$
 
Utility Services Just like home—water, electricity, gas, heating oil. (Here’s a hint it’s higher than what most pay at home.)Just like home—water, electricity, gas, heating oil. (Here’s a hint it’s higher than what most pay at home.)
$
 
Restaurant Occupancy Costs Rent, property taxes and insurance. Rent, property taxes and insurance.
$
 
Repairs and Maintenance Costs of repairing and maintaining everything the restaurant owns—kitchen equipment, dining room furniture, cleaning the carpet, etc.Costs of repairing and maintaining everything the restaurant owns—kitchen equipment, dining room furniture, cleaning the carpet, etc.
$
 
Depreciation Costs of general aging (wear and tear) of capital items.Costs of general aging (wear and tear) of capital items.
$
 
General and Administrative Expenses Commonly called “overhead,” this category includes costs necessary for running a business but not directly related to providing service to customers. It includes the costs of: credit-card charges, office supplies, postage, phone, dues, professional fees and protective services.Commonly called “overhead,” this category includes costs necessary for running a business but not directly related to providing service to customers. It includes the costs of: credit-card charges, office supplies, postage, phone, dues, professional fees, music licensing and protective services.
$
 
Corporate Overhead This category includes costs related to corporate franchise fees.This category includes costs related to corporate franchise fees.
$
 
 
Total Operating Expenses    
 
Income Before Taxes    
 
Profit Margin    
 

How do you think this restaurant did for the year?

The restaurant business is not an easy one. The average full-service restaurant earns a profit of just four percent of sales (less than a third of the normal tips paid!).

* Note: "Real numbers" are based on the 2009/2010 NRA Restaurant Industry Operations Report. Each restaurant assumes the following seat counts: 50 seats for fast food; 75 seats for a diner; 125 seats for a bar & grill; 100 seats for a steakhouse.

Grocery Store

  Your Answers Correct Answers
Grocery Sales Total amount paid by customers for the food they purchased. Total amount paid by customers for the groceries they purchased.
$
 
Cost of Groceries Total amount paid by customers for the food they purchased. What the store pays to its suppliers for its inventory.
$
 
Total Gross Profit  
 
 
Salaries/Wages The payroll. This includes all wages and salaries. The payroll. This includes all wages and salaries.
$
 
Employee Benefits This includes all health insurance, vacation pay, employer's part of Social Security (FICA) taxes, unemployment and workers' compensation taxes. This includes all health insurance, vacation pay, employer's part of Social Security (FICA) taxes, unemployment and workers' compensation taxes.
$
 
Property Rental Cost of renting the property. Cost of renting the property.
$
 
Utilities Just like home—water, electricity, gas, heating oil. (Here's a hint it's higher than what most pay at home.) Just like home—water, electricity, gas, heating oil. (Here's a hint it's higher than what most pay at home.)
$
 
Supplies Supplies necessary to operate the store Supplies necessary to operate the store
$
 
Maintenance and Repairs Costs of repairing and maintaining everything the restaurant owns—kitchen equipment, dining room furniture, cleaning the carpet, etc. Costs of repairing and maintaining everything the restaurant owns—kitchen equipment, dining room furniture, cleaning the carpet, etc.
$
 
Licenses & Other Taxes/Fees Operating licenses, taxes and fees Operating licenses, taxes and fees
$
 
Insurance Cost of insurance Cost of insurance
$
 
Depreciation Costs of general aging (wear and tear) of capital items Costs of general aging (wear and tear) of capital items
$
 
Other Operating Expenses Other Operating Expenses Other Operating Expenses
$
 
Total Cost of Operating  
 
 
Operating Profit  
 
 
After-Tax Profit  
 
 

How do you think this grocery store did for the year?

The grocery business is not an easy one. As the calculator above demonstrates, the average grocery store earns an after-tax (or "net") profit of just about two percent of sales.

* Note: "Real numbers" are based on the 2009/2010 NRA Restaurant Industry Operations Report and data from the Food Marketing Institute. Each restaurant assumes the following seat counts: 50 seats for fast food; 75 seats for a diner; 125 seats for a bar & grill; 100 seats for a steakhouse.