Saturday, February 9, 2019
How to calculate profit in Excel
For example, you sell bicycles for $200 each. Each bicycle costs you $150. First, find your gross profit, or the difference between the revenue ($200) and the cost ($150).
$200 – $150 = $50 gross profit
To find the margin, divide gross profit by the revenue.
$50 / $200 = 0.25 margin
To make the margin a percentage, multiply the result by 100.
0.25 X 100 = 25% margin
The margin is 25%. That means you keep 25% of your total revenue. You spent the other 75% of your revenue on buying the bicycle.