How to Use Profit Percentage Formula in Excel (3 Examples)

Profit percentage is an assessment of market dominance, controlling costs, and positioning strategies in financial control. Profit is the difference between what the company received from the consumer and what it paid to the vendors. The profit percentage is estimated by taking a company’s net profit and dividing it by its total sales. In this tutorial, we will explain to you how to use the profit percentage formula in Excel to determine the positioning.


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3 Quick Examples of Profit Percentage Formula in Excel

We’ll show you three examples of how to use formulas to calculate three different types of profit percentages in the sections below. Our data collection is depicted in the screenshot below. In addition, the required formula for calculating Gross profit, Operating profit, and Net profit percentages are displayed. We’ll use those formulas to achieve our goal.

Sample Data

We’ll use these formulas to achieve our goal.

Sample Data

1. Gross Profit Percentage Formula in Excel

We started by gathering financial data on a company’s overall costs and revenues. We’ll estimate the company’s Gross Profit Percentage from here. Follow the instructions below to do so.

Gross Profit Percentage Formula in Excel

Step 1:

  • Type the following formula in cell C12 to calculate the Total Sales.
=C4-C10

Gross Profit Percentage Formula in Excel

Step 2:

  • To calculate the Gross Profit, enter the following formula in cell C13.
=C12-C5

Gross Profit Percentage Formula in Excel

Step 3:

  • For calculating the profit percentage, divide the value of C13 with C12. Use the following formula to do that.
=(C13/C12)
  • Then, multiply the result by 100.

Gross Profit Percentage Formula in Excel

  • As a result, the percentage value will display as in the image below.

Gross Profit Percentage Formula in Excel

Read More: How to Calculate Gross Profit Margin Percentage with Formula in Excel


2. Operating Profit Percentage Formula in Excel

In a nutshell, operating costs refer to the expenses incurred to run the entire operation. Sales, administrative, and distribution costs may all involve in this cost run. To estimate the percentage, follow the outlined steps.

Step 1:

  • Firstly, write the following formula in cell C13.
=C12-C5-C6-C7

Operating

Step 2:

  • After calculating the Operating Profit, enter the following formula to calculate the percentage.
=C13/C12
  • Finally, multiply the result by 100 to get the result.

Operating

Operating

Read More: How to Use Profit and Loss Percentage Formula in Excel (4 Ways)


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3. Net Profit Percentage Formula in Excel

Finally, the most essential step is to determine the Net Profit Percentage. The result of actual leftover income after cutting all expenses is expressed as net profit. In a nutshell, it’s the most extensively used indicator for assessing a company’s health. Follow the steps below to calculate the net profit percentages.

Step 1:

  • At first, enter the following formula; this will get you the Net profit.
=C12-C5-C6-C7-C8-C9

Net Profit Percentage Formula in Excel

Step 2:

  • Divide the result with the Total Sales. Use the following formula to do so.
=(C13/C12)
  • Then, simply multiply the result by 100.

Net Profit Percentage Formula in Excel

  • So, you will get the value of the Net Profit Percentage as shown in the following image.

Net Profit Percentage Formula in Excel

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


Conclusion

To recap, I hope this tutorial has given you a solid understanding of how to apply the profit percentage formula in Excel. Examine the practice book and put your newfound knowledge to use. Because of your vital support, we’re motivated to continue developing classes like these.

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Bhubon Costa

Bhubon Costa

Myself, Bhubon Costa, an engineer, is currently employed with Exceldemy as an Excel & VBA Content Developer. I appreciate solving analytical difficulties, finding practical answers, and, for the most part, I enjoy taking on new tasks. I write articles on Exceldemy about various ways to get out of Microsoft Excel's stuck conditions. My passion is to leave my mark on the world through my work and to have an impact on the community who benefit from it.

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