Kick off the new school year with lessons from our Back to School 2021 collection to help students express themselves, build relationships, and stay organized.

# 5. Calculate Overall Expenses and Profit

Playback Speed:
Transcript

In addition to your total business expenses and profit, it’s also important to determine the costs for each individual product.

In this video, you will use a summary table to calculate your total expenses.

Label the rows: Total Out-of-Pocket Costs...

...Total Gross Sales, and Total Profit.

Adjust the width of the column, so the headings fit on 1 line.

To find the total estimated cost for each of these items, use the SUM function.

The SUM function adds a range of numbers to find your business’s total costs, sales, and profits.

To start, click the first cell in “Total Out-of-Pocket Costs”.

Then, type an equals sign.

To insert the SUM function, type in "S-U-M" and select it from the menu.

Next, select the entire Out-of-Pocket costs column.

The cells you highlight appear between the parentheses in the function.

Edit the formula to begin at the row of listed items.

In this example, the first list item begins in column H, row 6, so the cell reference is H6.

Press enter.

If you add more line items later, the formula will also work for those.

Use the SUM function again to calculate Gross Sales.

Type the formula into the cell next to Total Gross Sales.

Then, repeat the steps to calculate Total Profit by adding the amounts in the Profit column.

Imagine how long it would take you to calculate all those numbers and percentages without the SUM function tool.

Every time a number changed, you would have to redo all the calculations.

Using a spreadsheet saves time and effort and reduces the chance of making a mistake.