Create a Gross Profit Margin Calculator in Microsoft Excel

It is always useful to have a full understanding of how Gross Profit Calculations work outside of Microsoft Excel.

In this lecture you will see how to use the formulas learned in the previous lecture using a calculator.

We will now look at the Gross Profit Margin Calculator in order to see how it functions and how we add the formulas to calculate the margin. In this section you will:

• see how the calculator will function
• how the rate of VAT affects the Net and Gross costs and prices
• how you will be able to add and remove the VAT from a net cost/price and gross cost/price

In this section we will begin to write the formulas to create the Gross Profit Margin Calculator. We will cover:

• Adding the variable rate of VAT
• Working out the net unit price
• Calculating the Net retail price from a Gross retail price
• Calculating the Gross Profit Margin
• Adding a Gross to Net calculator
• Adding a Net to Gross calculator
• Error trapping for formulas

Not every sale you make will consist of just one item.

For example. A Vodka & Cola would consist of the costs of the vodka and the cola. The Retail Price combined with the combined costs of these two items would give you the Gross Profit Margin of the total items sols

In this section we will look at how to combine two or more items to calculate the total Gross Profit Margin.

In this lecture we will look at how to use Gross Profit Margin Calculations for multiple items that make up a single sale.