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how do i set up a profit margin formula



 
 
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  #1  
Old May 13th, 2009, 05:09 PM posted to microsoft.public.excel.misc
Wayne
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Posts: 274
Default how do i set up a profit margin formula

new to excel-- i would like to set up a formula to calculate the margin
percentage.

ex -- cost divided by retail= markup, markup divided by 1. the markup

1.00/1.50 = .667

.667/1.667=40% gross margin
  #2  
Old May 13th, 2009, 05:33 PM posted to microsoft.public.excel.misc
Bob I
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Posts: 10,698
Default how do i set up a profit margin formula

=(A1/B1)/(1+(A1/B1)) format as percent

wayne wrote:

new to excel-- i would like to set up a formula to calculate the margin
percentage.

ex -- cost divided by retail= markup, markup divided by 1. the markup

1.00/1.50 = .667

.667/1.667=40% gross margin


  #3  
Old May 13th, 2009, 05:37 PM posted to microsoft.public.excel.misc
eduardo
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Posts: 2,131
Default how do i set up a profit margin formula

Hi Wayne,
In your example the margin is 50% not 40% the formula to use is

Cell A1 = Selling price
Cell A2=Cost

=1/(1+(A2/A1))

other way is to simple deduct the cost from the Selling price divided by 100
=(A1-A2)/100

"wayne" wrote:

new to excel-- i would like to set up a formula to calculate the margin
percentage.

ex -- cost divided by retail= markup, markup divided by 1. the markup

1.00/1.50 = .667

.667/1.667=40% gross margin

 




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