Build 3-year financial projections with revenue, expenses, and profitability forecasts in income statement format.
A three-year income statement is the standard artifact behind a business plan: it answers the question of whether a company can turn early losses into a profitable run. This tool builds that statement one year at a time. You supply the assumptions, revenue, cost of goods sold, operating expenses, and an effective tax rate, and the tool arranges them into the classic income statement rows, showing margins and year-over-year growth alongside each year. Because it runs entirely in your browser, your assumptions never leave the page.
A concrete input and expected output from the current implementation.
Input
Year 1 revenue of $500,000, growing 10% per year in years 2 and 3; cost of goods sold at 40% of revenue each year; operating expenses of $150,000 flat each year; effective tax rate 25%.
Expected output
Year 1: revenue $500,000; COGS $200,000; gross profit $300,000; operating income $150,000; tax $37,500; net income $112,500 (22.5% net margin). Year 2: revenue $550,000; COGS $220,000; gross profit $330,000; operating income $180,000; tax $45,000; net income $135,000 (24.5%). Year 3: revenue $605,000; COGS $242,000; gross profit $363,000; operating income $213,000; tax $53,250; net income $159,750 (26.4%). Three-year totals: revenue $1,655,000; net income $407,250.
Operating income is gross profit minus operating expenses, and tax is 25% of operating income. Net income grows each year even though operating expenses stay flat, because fixed costs spread over larger revenue. That leverage pushes net margin from 22.5% to 24.5% to 26.4%. Totals are the sum of the three years.
Each year gets its own assumptions. Revenue can be entered directly or set to grow at a rate you choose, and cost of goods sold can be a flat amount or a percentage of that year's revenue. Operating expenses and a tax rate apply per year, and margins such as gross margin and net margin are computed against that year's revenue.
Every figure on the page is derived from the numbers you enter. The tool fetches nothing: no market data, no industry benchmarks, no company records. Every row, from gross profit to net income, is computed in your browser from the assumptions you entered, and none of those assumptions are transmitted anywhere. Close the page and the numbers are gone.
No. The tool builds an income statement in accrual format only. It shows revenue, expenses, and profit, but not when cash actually arrives or leaves. Cash flow needs separate timing assumptions, such as payment terms, inventory days, and capital spending, which are outside this tool's scope.
The tool cannot make the numbers realistic; it can only compute them. Realism comes from you: pricing evidence, unit sales, supplier quotes, and payroll records. A defensible projection cites where each assumption came from. The tool applies the math; the judgment is yours.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
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