How To Use Profit Margin Formula in Google Sheets?

By Harry ChuApril 27, 202511 min read
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.

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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.

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