Finance

Work out profit margin

How it works in Excel

• A2-B2 is the profit: price minus cost.
• Dividing by A2 shows it as a share of the price.
• Format the cell as a percentage.
• Margin divides by the price. Markup divides by the cost.
• Use revenue and net income for a net margin.

The idea in general

It answers: "Out of each dollar of sales, how much do I keep?"

What I assumed

• The price is in A2 and the cost is in B2.

Check the result on your own data before relying on it.