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Interactive explainer

How Money Is Structured in a Company

Follow a dollar of revenue all the way down to net income. Hover any layer to see what it means and how much it takes; edit the numbers or pick a preset to make it yours.

Income statement

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Tap a layer for what it means · tap a subtotal to read more.

Reading the income statement, top to bottom

Every company's profit-and-loss follows the same staircase. Start with revenue, take out the direct cost of delivering the product (COGS) to get gross profit. Subtract the cost of running the business (OPEX) for EBITDA, then non-cash depreciation & amortization for EBIT (operating profit). Take off interest for pre-tax income, then tax, and what remains is net income, the true bottom line. The bar shows where each dollar of revenue actually goes; hover a layer or open any term for the full explainer.

Preset figures are anchored to median SaaS benchmarks: gross margin 76% (80% on software revenue alone) in 2025, with sales & marketing typically the largest operating cost, followed by R&D and G&A, and median private-SaaS EBITDA in the low single digits, from Benchmarkit's 2026 benchmark report and SaaS Capital. Real companies vary widely; edit the numbers to match yours.

Frequently asked questions

What is the order of an income statement (P&L)?
Revenue, minus cost of goods sold (COGS) = gross profit; minus operating expenses = EBITDA; minus depreciation and amortization = EBIT (operating profit); minus interest = pre-tax income; minus tax = net income.
What is the difference between gross profit, EBITDA, EBIT and net income?
Each is a subtotal one step further down the P&L. Gross profit takes out only the direct cost of delivery, EBITDA also takes out running costs, EBIT also takes out non-cash depreciation and amortization, and net income is what is left after interest and tax.
What counts as COGS for a SaaS company?
The direct cost of delivering the product: hosting, third-party APIs, payment fees and support tied to usage. Sales, marketing, R&D and admin sit below gross profit as operating expenses. See COGS explained.
Where do depreciation and amortization go on the P&L?
Below EBITDA and above EBIT. They spread the cost of assets over their useful life and are a non-cash charge, which is why EBITDA adds them back.
Is tax charged when a company makes a loss?
In this model, tax applies only when pre-tax income is positive, so a loss carries no tax line. Real tax rules (loss carryforwards, minimum taxes) vary by country.
Cite this page

Citation

Adlega. "How Money Flows Through a Company, Interactive P&L." Updated October 22, 2026. https://adlega.com/blog/tools/money-map/

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<a href="https://adlega.com/blog/tools/money-map/">How Money Flows Through a Company, Interactive P&L</a> (Adlega, updated October 22, 2026)

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