Vending: Gross Margin Percent

Excel Formulas › Vending

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Every slot in the machine earns a different margin. Subtract the cost from the vend price and divide by the price, and you can see which products actually pay for the route.


Quick formula: Price minus cost, divided by the price:
=(B2-C2)/B2

Water at $1.00 costing $0.25 runs a 75% margin; a $1.50 soda at $0.55 runs about 63%.

The example

Three products, each with a vend price and a unit cost.

ABCD
1ProductVend priceUnit costMargin %
2Soda$1.50$0.5563.3%
3Chips$1.25$0.4564.0%
4Water$1.00$0.2575.0%

The formula

The gross profit over the price gives the margin:

=(B2-C2)/B2 // (price - cost) / price

How it works

Margin is profit as a share of the price:

  1. B2-C2 is the gross profit per unit — vend price minus what it cost you.
  2. Dividing by the price B2 expresses that profit as a percentage.
  3. Format the cell as a percent to read it at a glance.

Margin uses the selling price as the base; markup uses cost — do not mix them or the numbers will not match your P&L.

Try it: interactive demo

Interactive

Enter the vend price and your unit cost.

Variations

Profit in cents

Show the per-unit profit instead of the percentage.

=B2-C2

Weight by units sold

Get the blended margin across a slot's sales.

=SUMPRODUCT((Price-Cost))/SUM(Price)

Pitfalls & errors

Divide by the price, not the cost. Dividing by cost gives markup, a larger number that will not tie to your revenue.

Load the true landed cost — case price plus tax and the drive to the warehouse — or the margin reads better than it lives.

Practice workbook

📊
Download the free Vending: Gross Margin Percent practice workbook
Edit the yellow Vend price and Unit cost cells; the Margin % recalculates.

Frequently asked questions

What is the difference between margin and markup?
Margin divides profit by the selling price; markup divides profit by cost. A 75% margin item has a 300% markup — same profit, different base.
What margin should a vending item hit?
Operators often target 50% or higher on packaged snacks and drinks. Water and gum tend to run highest; energy drinks lowest after cost.

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Related formulas: Vending: Profit per Day · Margin vs Markup · Profit Margin & Markup