This article is to help business owners and entrepreneurs understand a **business’s profit and loss**. The article looks at profit and loss formulas with detailed examples, together with **gross and net profit calculators**.

Explaining key terms, which includes **‘Accruals Basis of Accounting’** and **‘The Matching Principle’**.

**Profit and loss formulas** explained in the article include the **gross profit margin**, the **net profit formula** and EBITDA margin. Also profit and loss problems are explained.