How To Use Profit Margin Formula in Google Sheets?
- Revenue is the total amount you earn from sales. In this example, it’s in cell B2.
- Cost (usually Cost of Goods Sold) is in cell C2.
- Profit is calculated by subtracting cost from revenue: A2 - B2
- Revenue (A): The price at which you sell the t-shirt, which is $25.
- Cost (B): The cost of producing and shipping the t-shirt, which is $15.
- Profit Margin (C): This is the percentage you’ll calculate.
- Transaction fees from Shopify, Stripe, or PayPal
- Shipping or fulfillment fees (especially if they vary by order or location)
- Product costs that change due to supplier price updates or currency rates.
Harry Chu
Founder of TrueProfit & eCommerce Profitability Expert
Harry Chu is the Founder of TrueProfit, a net profit tracking solution designed to help Shopify merchants gain real-time insights into their actual profits. With 11+ years of experience in eCommerce and technology, his expertise in profit analytics, cost tracking, and data-driven decision-making has made him a trusted voice for thousands of Shopify merchants.
