How to Calculate Profit Margin in Excel (and a Smarter Alternative)
- Revenue: $2,000,000
- COGS: $700,000
- Other Expenses: $500,000
- Manual data entry can lead to human errors: A small typo in one cell could throw off your entire calculation without you noticing.
- No real-time updates: Every time your costs, sales, or expenses change, you need to manually update the spreadsheet. It’s easy for data to get outdated fast.
- Dynamic costs are hard to track: If your ad spend, shipping fees, or supplier costs fluctuate daily, keeping your profit calculations accurate in Excel can feel like a full-time job.
- Managing multiple products and platforms adds complexity: Selling across sale channels means juggling different reports—and pulling it all into one sheet can quickly get overwhelming.
- It becomes time-consuming as you scale: What once took a few minutes can turn into hours of manual work every week, pulling you away from bigger growth opportunities.
- Real-time updates: TrueProfit syncs with your store, ad platforms, and shipping tools—so your profit numbers are always accurate, without manual updates.
- Accurate cost tracking: Track real-time COGS by product, region, or variant. TrueProfit pulls cost data directly from your tools and lets you customize it your way.
- Net Profit insights: See your true net profit—per product, per order, per store—automatically, without second-guessing.
- Financial health, at a glance: All your key numbers in one clean dashboard: profit margin, revenue, COGS, ad spend, and net profit.
Content Executive at TrueProfit & eCommerce Content Specialist
Leah Tran is a Content Specialist at TrueProfit, where she crafts SEO-driven and data-backed content to help eCommerce merchants understand their true profitability. With a strong background in content writing, research, and editorial content, she focuses on making complex financial and business concepts clear, engaging, and actionable for Shopify merchants.
Leah Tran is a Content Specialist at TrueProfit, where she crafts SEO-driven and data-backed content to help eCommerce merchants understand their true profitability. With a strong background in content writing, research, and editorial content, she focuses on making complex financial and business concepts clear, engaging, and actionable for Shopify merchants.
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