Help!

how do i set up a profit margin formula

 
Post new topic   General Reply to Topic (not reply to a specific post)    Forums Home -> General Discussions RSS
Next:  Goal Area  
Author Message
wayne
External


Since: Jul 23, 2006
Posts: 15



PostPosted: Wed May 13, 2009 1:09 pm    Post subject: how do i set up a profit margin formula
Archived from groups: microsoft>public>excel>misc (more info?)

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
Back to top
Eduardo
External


Since: May 04, 2006
Posts: 208



PostPosted: Wed May 13, 2009 1:37 pm    Post subject: RE: how do i set up a profit margin formula [Login to view extended thread Info.]
Archived from groups: per prev. post (more info?)

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
Back to top
Bob I
External


Since: Dec 30, 2004
Posts: 633



PostPosted: Wed May 13, 2009 3:33 pm    Post subject: Re: how do i set up a profit margin formula [Login to view extended thread Info.]
Archived from groups: per prev. post (more info?)

=(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
Back to top
Display posts from previous:   
Post new topic   General Reply to Topic (not reply to a specific post)    Forums Home -> General Discussions All times are: Eastern Time (US & Canada)
Page 1 of 1

 
You can post new topics in this forum
You can reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum