If you want to **calculate negative margin in Excel**, this article is for you. Here, we will walk you through **4 **easy and effective methods to do the task effortlessly.

**Table of Contents**hide

## Download Practice Workbook

## What Is a Negative Profit Margin?

When the **total cost **for any quantity exceeds the **selling price**, it is calledÂ **Negative Margin**. In business terms, a **Negative Margin **indicates expending a larger amount of money than earning income.

## 4 Methods to Calculate Negative Margin in Excel

The following table has the **Product**, **Total Cost**, and **Selling Price** columns. We will **calculate **the** negative margin **of this table using **4** different methods. Here, we used **Excel 365**. You can use any available Excel version.

### 1. Using Generic Formula to Calculate Negative Margin in Excel

In this method, we will use a generic formula to **calculate negative margin in Excel**.

**Steps:**

- First, we will type the following formula in cell
**E5**.

`=(D5-C5)/D5`

Here, the formula simply divides the value of **D5-C5** by **D5**.

- After that, press
**ENTER**. Then we will see the result in cell**E5**. - Afterward, we will drag down the formula with the
**Fill Handle tool**.

Now, we can see the complete **Margin** column. Here, we will highlight the **negative margin value** with **Red** color.

Now, we will add the **Percentage **to the **Margin** value.

- After that, we will select the entire
**Margin**column >> go to the**Home**tab >> click on**Percent Style**(**%**).

You can also add the Percentage by selecting the **Margin **column and pressing **CTRL+SHIFT+%**.

Finally, in the **Margin** column, we can see **calculate negative margin in Excel**.

**Read More: ****How to Calculate Sales Margin in Excel (with Quick Steps)**

### 2. Use of IF Function to Calculate Negative Margin in Excel

Here, we will use **the IF Function** to **calculate** the** negative margin in Excel**. Here, we will use the **IF** function to avoid **#DIV/0!** error that may occur when the **Selling Price** is **0**.

Let me show you the **error** first.

- To begin with, write the following formula in cell
**E5**.

`=(D5-C5)/D5`

- After that, we will press
**ENTER**.

Here, you can see the **output **in cell **E5** shows an **error**.

This is because cell **D5** has a *$0** S*

**elling Price**, and therefore, the denominator of the formula becomes

**0**. As a result, the

**error**appears.

To get rid of this error now will use the **IF **function.

**Steps:**

- First, we will type the following formula in cell
**E5**.

`=IF(D5<>0,(D5-C5)/D5,0)`

**Formula Breakdown**

**(D5-C5)/D5****â†’**returns the value after dividing**D5-C5**by**D5**.**Output: #DIV/0!**

**IF(D5<>0,(D5-C5)/D5,0)****â†’**The**IF**function returns**value_if_true**if the conditions is**TRUE**otherwise it returns**value_if_false**.**IF(FALSE,#DIV/0!,0)****â†’**becomes**Output: 0****Explanation:**As the**condition**is**FALSE**it returns the value of**value_if_false**.

- After that, press
**ENTER**. Then we will see the result in cell**E5**. - Afterward, we will drag down the formula with the
**Fill Handle tool**.

- Next, we will highlight the
**negative margin value**in**Red**color.

- After that, By following
**Method_1**steps, we will add the**Percentage**in the**Margin**column. - Next, weÂ
**Highlighted**theÂ**Negative Margin**withÂ**Red**color.

Finally, we can see in the **Margin** column we can see **calculate negative margin in Excel**.

**Read More: ****How to Calculate Net Profit Margin Percentage in Excel**

### 3. Applying IFERROR Function

In this method, we will use **the IFERROR function** to **calculate negative margin in Excel**.

**Steps:**

- First, we will type the following formula in cell
**E5**.

`=IFERROR((D5-C5)/D5,0)`

**Formula Breakdown**

**(D5-C5)/D5****â†’**First, it will**Subtract**the**Selling Price**from the**Total Cost**then it will**Divide**it by the**Selling Price**.**Output: #DIV/0!**

**IFERROR((D5-C5)/D5,0)****â†’**The**IFERROR**function returns a given**specific value**for any**error**.**Â****IFERROR(#DIV/0!,0)****â†’**becomes**Output: 0****Explanation:**Here, the**IFFERROR**function returns**0**as it founds an**error**.

- Afterward, press
**ENTER**. Then we will see the result in cell**E5**. - Then, we will drag down the formula with the
**Fill Handle tool**.

- After that, By following
**Method_1**steps, we will add the**Percentage**in the**Margin**column. - Next, we will
**highlight**the**negative margin value**in**Red**color.

Finally, we can see in the **Margin** column we can see **calculate negative margin in Excel**.

**Read More: ****How to Calculate Margin Percentage in Excel (5 Easy Ways)**

### 4. Inserting Table to Calculate Negative Profit Margin

In this method, we will** calculate negative profit margin in Excel**. First, we will calculate the **Profit**, and after that, we will calculate **Margin**. To make the task easier, we will **insert a Table** before calculation.

**Steps:**

- First, we will select the
**Entire**dataset >> go to the**Insert**tab >> select**Table**.

A **Create Table **window will appear.

Make sure **My table has headers** is marked.

- Then, click
**OK**.

Next, we will see the inserted table.

- After that, we will type the following formula in cell
**D5**to calculate**Profit**.

`=[@Revenue]-[@[Total Cost]]`

This formula simply subtracts **Total Cost** from **Revenue**.

- After that, press
**ENTER**. We will see the complete**Profit**column.

Now, we will calculate **Margin**.

- Afterward, we will type the following formula in cell
**E5**.

`=IFERROR([@Profit]/[@Revenue],0)`

**Formula Breakdown**

**[@Profit]/[@Revenue]****â†’**First, it will**Divide**the Profit by the**Revenue**.**Output: #DIV/0!**

**IFERROR([@Profit]/[@Revenue],0)****â†’**The**IFERROR**function returns a given**specific value**for any**error**.**Â****IFERROR(#DIV/0!,0)****â†’**becomes**Output: 0****Explanation:**Here, the**IFFERROR**function returns**0**as it founds an**error**.

- After that, press
**ENTER**. - After that, By following
**Method_1**steps, we will add the**Percentage**in the**Margin**column. - Next, we will highlight the
**negative margin value**in**Red**color.

Finally, in the **Margin** column, we can see the **calculated negative profit margin in Excel**.

## Practice Section

In the practice section of your sheet, you can practice the explained methods.

## Conclusion

Here, we tried to show you** 4 **methods to **calculate negative margin in Excel**. Thank you for reading this article, we hope this was helpful. If you have any queries or suggestions, please let us know in the comment section below. Please visit our website **Exceldemy** to explore more.