How to Calculate Profit margin in Excel | Profit Margin formula

Struggling with profit and loss? Or still figuring out how to calculate profit margin in excel? Here is your answer, Profit margin is an important figure for business because it tells the percentage of each profited sale. Profit margins are important when pricing products, pursuing financing and generating sales reports. If you create the spreadsheet and input the formula properly, Microsoft Excel will calculate profit margins. If you need to calculate a profit margin, you can easily do so with a simple formula that uses the sale price and the cost. Knowing how to calculate your profit margin will help you take control of your business and ensure that each sale nets the profit you expect.

What is Profit Margin in Excel, here’s the simple step?

Table with Sales Price and Profit margin

Step 1: Create a table same as like given picture. This table is showing Sale price in column A, Cost in column B, Profit in column C and Profit Margin in column D.

how to calculate percentage in excel

Step 2: Before we calculate profit margin formula, we need to calculate profit by input a formula in the cells of column C. the formula would be like this in cell C2:

=(A2-B2) The formula should read “=(A2-B2)” to subtract the cost of the product from the sale price. The difference is your overall profit, in this example, the formula result would be $120. Then press ENTER. You will get the profit value in cell

Step 3: Now you will get the profit value in cell C2. Now do the same for another cell of column C. after that the table will be looked like above picture.

Formula for Profit Margin

Step 4: Now we will calculate the profit Margin in column D using this formula in cell D2:

=(C2/A2)*100 This formula will calculate the percentage value of Profit margin. Now, Press ENTER. Do the same for another cell of column D. You will get all profit margin for each Sale.

Now you have successfully learned how to calculate percentage in excel, you can also learn how to create excel dashboard using this tutorial. Learn Excel Dashboard Course online

Pre-Registration Open

Power BI Dax

Related Tutorials

Text To Column in Excel | Split Cells
January 4, 2019
Pivot Tables (Complete Guidelines)
December 27, 2018
Power Bi Dax Deduplication Based On Column
December 17, 2018
Special Character Symbol List with Shortcodes in Excel
December 15, 2018
How to use AVERAGEIFS FUNCTION in Excel
December 10, 2018
How to use AVERAGEIF FUNCTION
December 10, 2018
How to use ABS Function in Excel
December 10, 2018
How to use AND Function in Excel
December 10, 2018
Delete Duplicate in Excel or Remove Duplicate in Excel
November 9, 2018
Excel Formulas PDF
September 6, 2018
How To Lock Cells in Excel | Unprotect Excel
August 13, 2018
4x Faster at Excel
August 6, 2018
Separate Content of One Excel Cells into Separate Columns
August 3, 2018
How to Transpose Excel Columns to Rows | Paste Special Method
July 26, 2018
How to create sparklines in Excel
July 19, 2018
AutoSum in Excel with Shortcut
July 17, 2018
OFFSET Function in Excel
July 6, 2018
Strikethrough Shortcut in Excel & Word
July 4, 2018
INDIRECT Function with SUM, MAX, MIN & Independent Cell Value
June 29, 2018
Pivot Table Slicers In Excel
June 12, 2018
How to Wrap Text in Excel Automatically and Manually
June 6, 2018
How to Hide/Unhide Column in Excel
June 5, 2018
Highlight row based on cell value
June 4, 2018
Learn how to remove blank cells in Excel
June 3, 2018
How to Group Numbers, Dates & Text in Pivot table in Excel
June 1, 2018