Quick monthly profit calculator

What the quick monthly profit calculator does

The simplest question in business is whether you made money this month. Enter your sales, the cost of the goods you sold and your other expenses, and the calculator gives the gross profit, the net profit and the margin for each month and for the year to date.

Who it is for

Small shops, freelancers and startups that want a quick monthly profit figure without full accounts.

How to use the workbook

1. Enter the sales for each month.
2. Enter the cost of the goods or services you sold.
3. Enter your other expenses, such as rent and wages.
4. Read the gross and net profit and the margin.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Gross and net profit for every month
• Gross and net margin
• Year-to-date totals at the top
• Room for all twelve months
• Chart of net profit by month

The workbook has these sheets: Instructions, Months, By month. The main table has the columns Month; Sales; Cost of sales; Other expenses; Gross profit; Net profit; Net margin. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Use the same costs you would put in your accounts.
• Include every expense, including your own pay if you draw one.
• Compare months to spot a falling margin.
• Move to full accounts as the business grows.

Why keep this record

Accounting records let you answer three questions at any time: what came in, what went out and who owes whom. Kept consistently they also make tax returns, loan applications and the sale of a business much easier, because the evidence is already organised. Entering transactions the day they happen is far cheaper than reconstructing them at year end.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Good accounting records are a legal duty as well as a management tool: keep the supporting receipts and invoices with the workbook, and keep each year's copy for at least five years. Work on a copy, never on your only file, and back it up.

Read how to keep business records for KRA for the wider picture. Free calculators that go with it: Turnover tax calculator. See more accounting templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: Turnover Tax Calculator
• Guide: How to set up an M-Pesa till or Paybill for your business and account for it
• Guide: Tax on selling personal items and second-hand goods online
• Guide: How to protect your business from fraud and theft
• Another template: Cashbook for busy businesses (up to 5,000 entries)
• Another template: Cost of goods sold monthly workbook
• Another template: Simple income and expense log

Need something different? Request a custom template, browse all guides or see every Excel template.