Let's see a step-by-step guide on how to calculate the profit percentage. In our case, we're going to use Google Sheets, but it also works with Excel.
1. Create a new spreadsheet
Within it, add the columns: Income, Production cost, Profit and Profit margin.
First step to calculate the profit margin.
2. Fill in your details
Now you must enter the unit price at which you sell cambodia phone data your product, for example, $100. Then, add its production cost in the corresponding cell, let's suppose that in our case it is $50.
Now, you can calculate the gross profit, which will appear in the “Profit” column. How? Using this formula: =B2-C2, and that’s it!
Second step to calculate the profit margin.
3. Place the formula on the sheet
The formula we saw above, in Excel and Google Sheets, is translated like this: D2/B2*100. The result, in our example, is 50.
Third step to calculate the profit margin.
4. Get your net profit margin
The first step to this is to know your profit margin for the entire month . To do this, you need to add a column with the number of products you sold per day. We'll call it Products Sold and we'll put it next to Revenue. Also, in the grey column we'll put the month, let's say it was October.
The formula, once you have added up that column, in this case will be: =B2*100 (100 corresponds to the income that each product represents, as we used previously). Then, below everything you complete for the month, add a cell for the totals. In our example, we did not complete all the days of the month, but you should have done so.
In addition, we also modify the costs according to the units sold. If you don't change it, you will end up with the cost of one product when, in reality, it may be the cost of 3.
Fourth step to calculate the profit margin.
Now, a new spreadsheet must be created within the file. On this new page, you will include columns for Fixed Expenses , Variable Expenses, Total Expenses, Profit, Net Income, and Net Profit Margin.
You will need to take the Profit from the previous sheet, Google Sheets and Excel make it easy: just put the equal sign, click on the cell with the profit figure and Enter.
To calculate net income, you will need to create the formula in your cell, which is the same one we saw before.