{"id":3325,"date":"2018-11-10T10:10:47","date_gmt":"2018-11-10T10:10:47","guid":{"rendered":"http:\/\/officetuts.net\/excel\/?p=3325"},"modified":"2024-03-30T11:12:16","modified_gmt":"2024-03-30T11:12:16","slug":"profit-margin-formula","status":"publish","type":"post","link":"https:\/\/officetuts.net\/excel\/formulas\/profit-margin-formula\/","title":{"rendered":"Excel Profit Margin Formula"},"content":{"rendered":"\n
Excel-Profit-Margin-Formula<\/a>Download File<\/a><\/div>\n\n\n\n

Understanding the profit margin<\/h2>\n\n\n\n

Profit margin is a ratio between a company\u2019s revenue and income. Let me explain it in the following example.<\/p>\n\n\n\n

Joe has a company that generates $1,200,000 in revenue. The expenses of the company are $900,000. So the net profit is $300,000.<\/p>\n\n\n\n

net profit<\/strong> = revenue – expenses<\/p>\n\n\n\n

net profit<\/strong> = $1,200,000 – $900,000 = $300,000<\/p>\n\n\n\n

Now, we can calculate the profit margin.<\/p>\n\n\n\n

profit margin<\/strong> = net profit \/ revenue<\/p>\n\n\n\n

profit margin<\/strong> = $300,000 \/ $1,200,000 = 25%<\/p>\n\n\n\n

Profit margin formula in Excel<\/h2>\n\n\n\n

Let\u2019s take a look at how to calculate this formula in Excel. This formula is very simple. The only thing you need to do here is to format the decimal value of 0.25 to a percentage<\/a>.<\/p>\n\n\n\n

You can do it in Home >> Number >> Percent Style<\/strong>.<\/p>\n\n\n\n

Alternatively, you can use Ctrl + Shift + %<\/strong>.<\/p>\n\n\n\n

\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

Understanding the profit margin Profit margin is a ratio between a company\u2019s revenue and income. Let me explain it in the following example….<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[170,190],"yoast_head":"\nExcel Profit Margin Formula<\/title>\n<meta name=\"description\" content=\"Learn how to calculate profit margin in Excel. Understand the formula & download an excel file to practice. 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