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Calculate Profit in Microsoft Excel

Calculate Profit in Microsoft Excel

A simple profit calculation is revenue minus cost. The useful part is structuring the worksheet so the formula remains understandable when rows are added later.

Basic example

If column B is Revenue and column C is Cost, enter this in D2:

=B2-C2

Copy the formula down the Profit column.

Profit margin

To show profit as a percentage of revenue, use:

=IFERROR((B2-C2)/B2,0)

Format the result as Percentage. IFERROR avoids a divide-by-zero error when revenue is blank or zero.

Better worksheet design

  • Convert the range to an Excel Table so formulas automatically fill new rows.
  • Use separate columns for revenue, direct cost and any additional expenses you want to report independently.
  • Do not type currency symbols into numeric cells; apply a currency number format instead.
  • Use a total row or SUM for overall revenue, cost and profit rather than adding displayed values manually.

Check: verify a few rows with a calculator. A negative result means the cost exceeded revenue; it is not automatically a formula error.