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Excel 2003 formula for profit margins

  1. #1
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    07-02-2013
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    Excel 2003
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    Exclamation Excel 2003 formula for profit margins

    Good Morning All,
    I am trying to make a spreadsheet that has figures profit margins for dollar amounts from $250.00 to $7000.00 with profit margins on those amounts of 18% to 30%.

    I have originally set up the sheet $$ amounts in row (A) and %'s across the top.

    Example:
    Invoice for $850.00
    Pay Driver 700.00 of the 850.00
    for a profit margin of 18%

    I can not figure out the formula - can any one help????
    Thanks

  2. #2
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    08-08-2007
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    Excel 2002, Excel 2007, Excel for Mac 2011
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    Re: Excel 2003 formula for profit margins

    Retail = Cost / (1-margin)
    Cost = Retail x (1-margin)
    Margin = (Retail - Cost) / Retail

    Margin = (850-700)/850 = 17.6% marign

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