How Do You Calculate Gross Profit Margin Using Excel?
Gross profit margin measures the amount of revenue a company has after the cost of goods sold is taken into account. If a company has a higher gross margin within its industry and against a benchmark, then it is running more efficiently than its peers and competitors. Gross profit margin is calculated as gross profit divided by total sales. Microsoft Excel can easily calculate gross profit margin to help you analyze various scenarios by changing the revenue and cost of goods sold variables. Open a new workbook in Microsoft Excel. Enter the sales and cost of good sold data down a column. For example, if you want to calculate the gross profit margin for a company that has sales of $500,000 and cost of goods sold of $200,000 enter the following information in these cells: A1 – Sales B1 – 500000 A2 – Cost of goods sold B2 – 200000 A3 – Gross profit A4 – Gross profit margin Type “=B1-B2” in cell B3 to calculate the gross profit. Gross profit is equal to sales minus cost of goods sold. In th
