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How to calculate markup in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=(B2-A2)/A2✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Cost | Selling Price | Markup % |
| 80 | 100 | |
| 50 | 75 | |
| 120 | 180 | |
| 200 | 250 |
=(B2-A2)/A2→0.25
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Step by step
- 1Create two columns: Cost (A) and Selling Price (B). Enter your values in rows 2 onward.
- 2In the Markup % column, enter =(B2-A2)/A2. This divides the profit (Selling Price minus Cost) by the Cost.
- 3Format the result cell as Percentage to display the markup as a percentage (e.g., 0.25 becomes 25%).
Tips
- To calculate the selling price from a cost and desired markup, use =A2*(1+markup_rate), e.g., =A2*1.30 for a 30% markup.
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Frequently asked
What is the difference between markup and margin?
Markup is calculated on cost; margin is calculated on the selling price. A 25% markup equals a 20% margin.
How do I calculate the selling price when I know the cost and desired markup?
Multiply the cost by (1 + markup rate): =A2*(1+0.30) for a 30% markup.
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