Get profit margin percentage

Get Profit Margin Percentage Using Excel Formula

Mostly, in the new businesses, where partners are more than one, every little detail is noted regarding the cost, selling price, and profits. For smaller values, this task may be easy but for large values, it may take a lot of time to calculate all the small details. So, we have brought a simple yet effective Excel formula for you to get profit margin percentage instantly, even there are thousands of calculations. Let us explain it.

Basic Formula

=(price-cost)/price

Explanation

For the calculation of profit margin, you can use this formula to get the instant results. This formula will use the sale price twice and cost once.

Example

Let us explain it with the help of an example. If you see the screenshot below, the formula used in E5 is;

=(C5-D5)/C5

Figure 1. Example of Formula to Get Profit Margin Percentage

If you miss the parentheses or the round brackets () in the formula, the order of the operation will be manipulated.

By default, you will get the result in decimal i-e, 0.24. To get the answer in the percentage, you need to format the cell using the ribbon. To access all number formats, you can also use Ctrl+1.

Please check the screenshot below to get an idea about how to change the cell’s value from decimal to the percentage. The red circle around the percentage bar indicates how to change the decimal values to the percentage.

Figure 2. Change the Cell Values from Decimal to Percentage Instantly

 

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