The difference is your overall profit, in this example the formula result would be $17. Input a formula in the final column to calculate the profit margin on the sale.

Calculate the gross profit percentage by using Excel's division operator. Continuing with the example above, if your gross profit is in cell C3, type the formula "=C3/B1" to calculate the percentage.

Understand the basics of the gross profit margin including its interpretation as a measure of profitability and its calculation using Microsoft Excel.