Gross margin calculation in Excel

Download the free gross margin calculation template in Excel and make margin and profit estimates of your business.

The gross margin calculation template in Excel is made to make estimates of revenue and production costs of your products or services. The Excel template includes the explanation of each of the calculations and also some simple examples. The data you must enter is the unit price of each product, units sold, material costs, distribution, production and other expenses.

The gross margin calculation template in Excel has two workbooks; the first to make a simple calculation of the gross margin of a product, which will be the difference between the sale price and the purchase price and the second to make a calculation of the gross operating margin, which will be the difference between the sale price and the costs directly chargeable.

The template can be used by anyone who knows basic MS Excel; no need to enter new formulas or program formulas or Visual Basic. If you need to learn or review the operation of MS Excel, you can watch some videos very well explained in Microsoft Office Support.

What is the purpose of calculating gross margin?

The calculation of gross margin serves to determine the percentage of profit that a company obtains from its net sales. This information is important to measure the profitability of the company and to evaluate whether the prices charged for products or services are adequate. Gross margin can also help a company identify areas of its operations where savings can be made to improve its margins and maximize its profits.

How is gross margin calculated?

The steps to calculate gross margin are:

1. Determine the total revenue of the company over a given period of time.
2. Subtract operating expenses and costs of goods sold from total revenue to get net income.
3. Divide net revenue by total revenue to get the gross margin percentage.
4. Multiply the gross margin percentage by 100 to get the gross margin in percentage terms.

Features of gross margin calculation template in Excel:

• 100% editable in MS Excel, includes calculation formulas.
• 2 editable books for data entry.
• Conditional formats with dynamic colors according to the results obtained.
• Editable file in any version of MS Excel (.xls or .xlsx) and exportable in PDF or the format you want.

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