Calculating profit margin

I would like to calculate profit margin. I already have a formula field to calculate COGs. But, when I try to use the results of the COGS formula field in a new formula, it doesn’t work. Is that normal?

So, I tried this formula to bypass using a fiend in a formula that is itself the result of a formula. But I also cannot get this formula to work:

({LIST PRICE} - ((PRINT + MOUNT + SHIP) + (TIME * 25))) / {LIST PRICE}

Print, mount, ship, and time add up to my COGs, so I am trying to divide gross profit by list price to get profit margin. But it just returns a value of 1. The calculation is correct without the division by list price, as

{LIST PRICE} - ((PRINT + MOUNT + SHIP) + (TIME * 25))

Any suggestions?

This might be due to your formatting not being set correctly. The field is displaying an integer value, so it’s rounding up to one when the true value is actually a decimal.

When editing the formula, there is another tab that a lot of people don’t see, called “Formatting”.

Set the formatting to a percentage (assuming that’s what you want for your profit margin?), and then you’ll have options to set the precision for decimal points.

One last suggestion I might make… is to add an IF() statement to your formula to catch errors. If {LIST PRICE} is empty, you’ll be dividing by 0, which will create problems.

Try this…

IF({LIST PRICE}, ({LIST PRICE} - (({PRINT} + {MOUNT} + {SHIP} + (TIME * 25))) / {LIST PRICE})

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