# Common Size Income Statement Calculator

### What does it do?

A common size income statement is one that has an additional column showing each monetary amount as a percentage of the revenue (sales) of the business.

The common size income statement calculator allows for two income statements to be entered so that comparisons can be made. The use of the common size income statement as a comparison tool is discussed more fully in our common size income statement tutorial.

### Formula

This common size income statement calculator works out the percentage each line item of the income statement is of total revenue. The calculation for each line item is given by:

`Line item % = Line item value / Total revenue value x 100%`

For example, if the income statement has total revenue of 108,249, and shows operating expenses of 8,701, then operating expenses are 8,701/108,249 = 8.0% of total revenue

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### Instructions

The Excel common size income statement calculator, available for download below, is used to produce the common size income statement by entering details from the income statement of the business. The calculator is used as follows:

##### Step 1

Enter the titles of the two income statements, this might be for the same business for different accounting periods, or for different businesses requiring comparison.

##### Step 2

Enter the income statement information for each business. This information might be from management information, published regulatory documents, or from industry standards for comparison.

##### Step 3

The common size income statement calculator totals the income statement information and then works out the percentage each line item is in relation to the total revenue of the business.