In Excel or Google Sheets, gross margin for a whole period is (SUM(B2:B7) - SUM(C2:C7)) / SUM(B2:B7), where each SUM covers one column of monthly figures. On the sample data it returns 45.56%.
Gross margin = (Revenue − Cost of goods sold) ÷ Revenue × 100
What you need
Gross margin is the percentage of revenue left after paying for the goods you sold: revenue minus cost of goods sold (COGS), divided by revenue, times 100. You need these columns, here from the sample file monthly.csv:
- Revenue (net of discounts): column B (revenue)
- Cost of goods sold: column C (cogs)
Step by step
- Download monthly.csv below and open it: in Excel use File → Open; in Google Sheets use File → Import → Upload. The headers land in row 1 and the six months in rows 2 to 7.
- Click any empty cell and enter =(SUM(B2:B7) - SUM(C2:C7)) / SUM(B2:B7) for the whole six months. It adds up each column first and then does the arithmetic once, which is the correct way to combine months.
- For each month, click AQ2, enter =(B2 - C2) / B2 and drag the fill handle down to row 7.
- Format the results as a percentage (Home → %, or Format → Number → Percent in Sheets). The formula returns a fraction such as 0.45, which the format shows as 45%.
- If a month can have zero in the denominator, wrap the formula so it shows a blank instead of #DIV/0!: =IFERROR((B2 - C2) / B2,"").
The formulas
=(SUM(B2:B7) - SUM(C2:C7)) / SUM(B2:B7)=(B2 - C2) / B2What you should get
Run against the sample data, the code above returns these values:
| Month | revenue | cogs | gross_margin |
|---|---|---|---|
| 2026-01 | 4,12,000 | 2,26,600 | 45.00% |
| 2026-02 | 4,38,500 | 2,36,800 | 46.00% |
| 2026-03 | 4,71,200 | 2,59,200 | 44.99% |
| 2026-04 | 4,55,800 | 2,55,200 | 44.01% |
| 2026-05 | 5,02,300 | 2,71,200 | 46.01% |
| 2026-06 | 5,48,900 | 2,90,900 | 47.00% |
| Whole period | 28,28,700 | 15,39,900 | 45.56% |
(₹28,28,700 − ₹15,39,900) ÷ ₹28,28,700 × 100 = 45.56%
Notes for Excel
- Google Sheets accepts the same formulas. If your spreadsheet locale uses a comma as the decimal separator, Sheets and Excel expect semicolons between function arguments instead of commas.
- Averaging the monthly results with AVERAGE() gives a different and usually wrong answer for the period, because every month counts the same however large it was.
- Excel tables (Insert → Table) let you write the same formula with column names instead of letters, which is easier to read and survives inserted columns.
Where gross margin misleads
- Be consistent about what goes into COGS. Some brands include inbound freight and packaging, others put them in operating costs; either works if it never changes.
- Gross margin is a percentage; gross profit is the rupee amount. They can move in opposite directions.
- Margin and markup are different. A 50% markup on cost is a 33% margin on price.
The full explanation, with a calculator, is on the Gross margin page.
Same metric, other tools
Related metrics in Excel and Google Sheets
- How to calculate gross profit in Excel and Google Sheets
- How to calculate COGS as a percentage of revenue in Excel and Google Sheets
- How to calculate contribution margin in Excel and Google Sheets
- How to calculate break-even ROAS in Excel and Google Sheets
- How to calculate markup in Excel and Google Sheets
Learn more about Excel
About the data on this page
The figures come from a small made-up dataset, printed above in full so you can check every number by hand. Download it as monthly.csv. The results are computed from those rows when the page is built, and the Excel formulas, SQL and Python on these pages are run against the same rows before publishing, so the code and the answers agree.
To get these numbers from your own data without writing formulas, try AnalyzeIt: ask in plain words and it shows the working behind every figure.
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