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How to calculate markup vs margin in Excel and Google Sheets

Topic:Finance basics
Excel & Google Sheets
=B2/(A2-B2)
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Verified example

Computed by a real spreadsheet engine on the sample data below.

Cost PriceSelling PriceMarginMarkup
100150=B2/(A2+B2)=B2/A2-1

=B2/(A2-B2)→-3

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Step by step

  1. 1Enter your cost price in cell A2 and selling price in cell B2.
  2. 2To calculate margin, use the formula =B2/(A2+B2) in cell C2.
  3. 3For markup, use the formula =B2/A2-1 in cell D2.

Tips

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Frequently asked

What's the difference between markup and margin?

Markup is the percentage increase from the cost price to the selling price, while margin is the percentage of the selling price that is profit.

Can I use these formulas for any currency?

Yes, the formulas are currency-neutral and will work for any currency as long as the cost and selling prices are in the same currency.

What should I do if my cost price is higher than my selling price?

If your cost price is higher than your selling price, your margin and markup calculations will show negative values, indicating a loss on each unit sold.

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Formulas used

SUMAVERAGE

Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.

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