Calculate Profit

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How to calculate profit in Excel

 

 

Steps:

For example, you sell bicycles for $200 each. Each bicycle costs you $150. First, find your gross profit, or the difference between the revenue ($200) and the cost ($150).

$200 – $150 = $50 gross profit

To find the margin, divide gross profit by the revenue.

$50 / $200 = 0.25 margin

To make the margin a percentage, multiply the result by 100.

0.25 X 100 = 25% margin

The margin is 25%. That means you keep 25% of your total revenue. You spent the other 75% of your revenue on buying the bicycle.