# How To Calculate Gross Profit Margin And Gross Profit Margin Percent

• Formulas

## FAQs

The profit margin formula in Excel is the profit divided by the sale amount, or (C2/A2)100, to produce a percentage number. Example: Using the Profit Margin Formula in Excel, calculate (120/200)100 to get a profit margin of 60%.

On the surface, a gross profit margin ratio of 50 to 70% would appear to be healthy for many types of enterprises, including retailers, restaurants, manufacturers, and other goods makers.

The profit margin formula in Excel is the profit divided by the sale amount, or (C2/A2)100, to produce a percentage number. Example: Using the Profit Margin Formula in Excel, calculate (120/200)100 to get a profit margin of 60%.

Click the "Autosum" button in the first cell beneath "Price," then click "Enter" on the keyboard. The formula "=SUM(B2:C2)" will automatically sum the cost and markup numbers.

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