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How to calculate markup vs margin in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=B2/(A2-B2)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Cost Price | Selling Price | Margin | Markup |
| 100 | 150 | =B2/(A2+B2) | =B2/A2-1 |
=B2/(A2-B2)→-3
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Step by step
- 1Enter your cost price in cell A2 and selling price in cell B2.
- 2To calculate margin, use the formula =B2/(A2+B2) in cell C2.
- 3For markup, use the formula =B2/A2-1 in cell D2.
Tips
- Ensure that your cost and selling prices are entered as positive numbers.
- Be cautious with zero or negative values in your cost or selling price cells as they can lead to errors or misleading results.
- Remember, margin is calculated based on the selling price, while markup is based on the cost price.
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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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