This gross margin calculator will help you to estimate the gross margin percentage of your product for use in the Financial Projections Template.
Each product or service within your business has a gross margin associated with it. As can be seen the gross margin is simply the difference between the selling price and the cost price of the product.
Gross margin = Selling price - Cost price
Subsequently the gross margin is used to calculate the gross margin percentage.
Gross margin % = Gross Margin / Selling price
Gross Margin Example
In order to demonstrate suppose a product has a selling price of 340 and a cost price of 190. Accordingly the calculation of the gross margin and gross margin percentage are as follows.
Gross margin = Selling price - Cost price Gross margin = 340 - 190 = 150 Gross margin % = Gross margin / Selling price Gross margin % = 150 / 340 = 44.1%
If your business has multiple products then use this gross margin calculator for each product and average the margins using our weighted average gross margin calculator.
Gross Margin Calculator Download
As can be seen the Excel sheet, available for download below, helps a business calculate the gross margin percentage for its products by entering the cost components and selling price of the product. Additionally it also calculates the markup percentage of the product.
The gross profit calculator is available for download in Excel format by following the link below.
Users use this margin calculator template at their own risk. We make no warranty or representation as to its accuracy. We are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of gross profit margin calculator excel template that you might use. It is purely illustrative. This template does not reflect general standards or targets for any particular company or sector. If you do spot a mistake in the template, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.