{"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
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 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\nProfit margin formula in Excel<\/h2>\n\n\n\n