# Gross Margin Calculator Excel Template

Creating an Excel template for your gross margin is a great way to save time and money. All of the calculations and reports you create will be based on a common base so that everything runs smoothly. The results of your calculations are easily accessible from all of the spreadsheets and reports you create.

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Keep in mind, though, that there is a bit of typing involved when using formulas. Unless you already know how to do calculations, this can be a bit frustrating. But don’t fret. It’s completely doable!

There are many different types of formulas and these will vary depending on what type of businesses you run. I’ve found that the common ones are:

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Expense Ratio – If you want to see how much your expenses are relative to your gross profit you can use Expense Ratio. This tells you how much you are spending versus your profits. This is especially useful if you have a lot of turnovers. You can see what type of business you have and how much your expenses are compared to your income.

Gross Profit – As stated before, this is another way to view your profit and expenses. You can look at your gross profit as a percentage of your expenses. This is handy for determining how much you can cut your expenses to keep your expenses down and still make a profit.

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Gross Profit & Cost of Sales – This shows you your profit, or “cost of sales”, and your cost of goods sold. These are the two most important and crucial parts of a business. Without them, you won’t be able to get the job done.

Pct. of Sale – This shows you your revenue as a percentage of your inventory. In other words, how much your selling costs are vs. how much you’re getting paid to sell the product.

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Returns On Investments – The returns of investments are basically how much profit you’ve made. This will include your gross profit, your cost of goods sold, and any other returns you’ve had in the last month.