How to calculate Gross Profit Margin if GP > 100%?

I have an Excel formula that calculates the Gross Profit Margin as follows: GP = (Price - Cost) / Price This works great as long as the GP is less than 100%. As you can see below, even when the price is ridiculously high, the GP never can exceed 100%. Is there something wrong with my formula? Based on cost of $1.00 Price GP 1 ______________ - 1.5 ______________ 0.333 2 ______________ 0.500 3 ______________ 0.667 4 ______________ 0.750 5 ______________ 0.800 10 ______________ 0.900 20 ______________ 0.950 30 ______________ 0.967 50 ______________ 0.980 100 ______________ 0.990 200 ______________ 0.995

3 months ago - 1 answers