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Excel Formula for Profit Margin Calculation

2026-03-18

Gross Profit Margin

Gross profit margin is (Revenue - Cost) / Revenue. If revenue is in A2 and cost is in B2:

=(A2-B2)/A2

Net Profit Margin

Net profit margin includes all expenses. If total expenses are in C2:

=(A2-C2)/A2

Markup Percentage

Markup is the percentage added to cost. Different from margin:

=(A2-B2)/B2

Format as Percentage

Wrap any margin formula in TEXT to display as a clean percentage:

=TEXT((A2-B2)/A2, "0.0%")

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