Markup Calculator

[datadigger]

Now I know the difference between markup and margin. What I need to do is set up a formula in excel to give the the proper markup on cost that will result in the specified margin for a product.

Example:

Cost = $150
Desired margin = 50%
Markup - ??

I want the the formula to figure out the markup and then apply that to the cost cost giving me my selling price to get the the margin levels I need.

Also, does anyone know of conversion table from margin-to- markup

Thanks !!

 

[EOAEvan]

Not a retail expert but if I understand this correctly..

Assuming cost is in A1, desired margin as a percent in B1, Markup in C1

in C1
=A1*(1+b1)

or in your example

=150*1.5 (result of 225)

 

[jasonb75]

Try

=A1/((A1/A2)-A1)

Where A1 = Cost and A2 = Margin

EOAEvan correct answer should be 300 (cost/margin) is the correct way to calculate.

Excel Workbook
	A	B	C	D	E	F	G	H	I	J	K	L
1	Margin	Markup	Margin	Markup	Margin	Markup	Margin	Markup	Margin	Markup	Margin	Markup
2	1.000%	1.010%	21.000%	26.582%	41.000%	69.492%	51.000%	104.082%	61.000%	156.410%	81.000%	426.316%
3	2.000%	2.041%	22.000%	28.205%	42.000%	72.414%	52.000%	108.333%	62.000%	163.158%	82.000%	455.556%
4	3.000%	3.093%	23.000%	29.870%	43.000%	75.439%	53.000%	112.766%	63.000%	170.270%	83.000%	488.235%
5	4.000%	4.167%	24.000%	31.579%	44.000%	78.571%	54.000%	117.391%	64.000%	177.778%	84.000%	525.000%
6	5.000%	5.263%	25.000%	33.333%	45.000%	81.818%	55.000%	122.222%	65.000%	185.714%	85.000%	566.667%
7	6.000%	6.383%	26.000%	35.135%	46.000%	85.185%	56.000%	127.273%	66.000%	194.118%	86.000%	614.286%
8	7.000%	7.527%	27.000%	36.986%	47.000%	88.679%	57.000%	132.558%	67.000%	203.030%	87.000%	669.231%
9	8.000%	8.696%	28.000%	38.889%	48.000%	92.308%	58.000%	138.095%	68.000%	212.500%	88.000%	733.333%
10	9.000%	9.890%	29.000%	40.845%	49.000%	96.078%	59.000%	143.902%	69.000%	222.581%	89.000%	809.091%
11	10.000%	11.111%	30.000%	42.857%	50.000%	100.000%	60.000%	150.000%	70.000%	233.333%	90.000%	900.000%
12	11.000%	12.360%	31.000%	44.928%	51.000%	104.082%	61.000%	156.410%	71.000%	244.828%	91.000%	1011.111%
13	12.000%	13.636%	32.000%	47.059%	52.000%	108.333%	62.000%	163.158%	72.000%	257.143%	92.000%	1150.000%
14	13.000%	14.943%	33.000%	49.254%	53.000%	112.766%	63.000%	170.270%	73.000%	270.370%	93.000%	1328.571%
15	14.000%	16.279%	34.000%	51.515%	54.000%	117.391%	64.000%	177.778%	74.000%	284.615%	94.000%	1566.667%
16	15.000%	17.647%	35.000%	53.846%	55.000%	122.222%	65.000%	185.714%	75.000%	300.000%	95.000%	1900.000%
17	16.000%	19.048%	36.000%	56.250%	56.000%	127.273%	66.000%	194.118%	76.000%	316.667%	96.000%	2400.000%
18	17.000%	20.482%	37.000%	58.730%	57.000%	132.558%	67.000%	203.030%	77.000%	334.783%	97.000%	3233.333%
19	18.000%	21.951%	38.000%	61.290%	58.000%	138.095%	68.000%	212.500%	78.000%	354.545%	98.000%	4900.000%
20	19.000%	23.457%	39.000%	63.934%	59.000%	143.902%	69.000%	222.581%	79.000%	376.190%	99.000%	9900.000%
21	20.000%	25.000%	40.000%	66.667%	60.000%	150.000%	70.000%	233.333%	80.000%	400.000%
Sheet1

 

[EOAEvan]

Ah, I see. Found this on a google search... I got them backwards

Margin:
The percentage margin is the percentage of the final selling price that is profit.

Markup:
A markup is what percentage of the cost price do you add on to get the selling price.

These are different, a selling price with a margin of 25% results in more profit than a selling price with a markup of 25%.