Debt Snowball Calculator Excel

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Reviewed by David Chen, CFA Financial Analyst & Excel Expert Updated: October 2023 | Fact Checked

Master your business finances with our margin calculator excel tool. Designed to simulate Excel’s logic, this calculator helps you find missing variables like Gross Margin, Cost, or Selling Price instantly.

Margin Calculator Excel

Enter any 2 variables to calculate the rest.

Please enter at least 2 variables to solve.
Calculated Result $0.00

margin calculator excel Formula:

Excel Formula for Margin:
=(Revenue – Cost) / Revenue

Source: Microsoft Excel Documentation | Source: Investopedia

Variables:

  • Cost: The total expense incurred to produce or purchase the product.
  • Revenue: The final selling price paid by the customer.
  • Gross Margin: The percentage of revenue that exceeds the cost.
  • Gross Profit: The absolute dollar amount earned after subtracting costs.

What is margin calculator excel?

A margin calculator excel is a specialized financial tool used to determine the profitability of a product or service. In business, understanding the relationship between your cost of goods sold (COGS) and your final selling price is critical for maintaining healthy cash flow.

While many professionals use spreadsheets, this web-based module replicates the exact mathematical logic used in professional Excel templates, allowing for quick “what-if” scenarios without opening a desktop application.

How to Calculate margin calculator excel (Example):

  1. Identify Variables: Let’s say your product costs $50 and you want a 40% margin.
  2. Apply Excel Formula: To find the Selling Price: =Cost / (1 - Margin%).
  3. Calculate: $50 / (1 – 0.40) = $50 / 0.60 = $83.33.
  4. Verify Profit: Selling Price ($83.33) – Cost ($50) = $33.33 Gross Profit.

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Frequently Asked Questions (FAQ):

Q: How do I calculate margin in Excel?

A: Use the formula =(B2-A2)/B2 where B2 is the selling price and A2 is the cost. Format the cell as a percentage.

Q: What is a good profit margin?

A: A “good” margin varies by industry, but generally, a 10% net profit margin is considered average, while 20% is considered high.

Q: Is margin the same as markup?

A: No. Margin is profit relative to the selling price, while markup is profit relative to the cost price.

Q: Why does my Excel margin formula show a negative number?

A: This happens when your Cost is higher than your Selling Price, indicating a loss on the sale.

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