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Excel Gross Margin Formula

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(Revenue - COGS) / Revenue

Quick context

  • Works in both Excel and Google Sheets.
  • Use when you need consistent, auditable results.
  • Copy the snippet above and adjust only the ranges.

When to use

Calculates the percentage of revenue that exceeds the cost of goods sold.

Determine the profitability of your products.

Calculate Gross Margin

Determine the profitability of your products.

Inputs

  • Revenue Total sales revenue.
  • COGS Cost of Goods Sold.

Practical Example

=(200 - 120) / 200

Disclaimer: While we strive for accuracy, these formulas are provided "as is" without warranty of any kind. Please verify all results before use.