Markup Calculator

datadigger

New Member
Joined
Mar 16, 2009
Messages
4
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 !!
 

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EOAEvan

Active Member
Joined
Sep 20, 2007
Messages
399
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

Well-known Member
Joined
Dec 30, 2008
Messages
14,761
Office Version
  1. 365
Platform
  1. Windows
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
ABCDEFGHIJKL
1MarginMarkupMarginMarkupMarginMarkupMarginMarkupMarginMarkupMarginMarkup
21.000%1.010%21.000%26.582%41.000%69.492%51.000%104.082%61.000%156.410%81.000%426.316%
32.000%2.041%22.000%28.205%42.000%72.414%52.000%108.333%62.000%163.158%82.000%455.556%
43.000%3.093%23.000%29.870%43.000%75.439%53.000%112.766%63.000%170.270%83.000%488.235%
54.000%4.167%24.000%31.579%44.000%78.571%54.000%117.391%64.000%177.778%84.000%525.000%
65.000%5.263%25.000%33.333%45.000%81.818%55.000%122.222%65.000%185.714%85.000%566.667%
76.000%6.383%26.000%35.135%46.000%85.185%56.000%127.273%66.000%194.118%86.000%614.286%
87.000%7.527%27.000%36.986%47.000%88.679%57.000%132.558%67.000%203.030%87.000%669.231%
98.000%8.696%28.000%38.889%48.000%92.308%58.000%138.095%68.000%212.500%88.000%733.333%
109.000%9.890%29.000%40.845%49.000%96.078%59.000%143.902%69.000%222.581%89.000%809.091%
1110.000%11.111%30.000%42.857%50.000%100.000%60.000%150.000%70.000%233.333%90.000%900.000%
1211.000%12.360%31.000%44.928%51.000%104.082%61.000%156.410%71.000%244.828%91.000%1011.111%
1312.000%13.636%32.000%47.059%52.000%108.333%62.000%163.158%72.000%257.143%92.000%1150.000%
1413.000%14.943%33.000%49.254%53.000%112.766%63.000%170.270%73.000%270.370%93.000%1328.571%
1514.000%16.279%34.000%51.515%54.000%117.391%64.000%177.778%74.000%284.615%94.000%1566.667%
1615.000%17.647%35.000%53.846%55.000%122.222%65.000%185.714%75.000%300.000%95.000%1900.000%
1716.000%19.048%36.000%56.250%56.000%127.273%66.000%194.118%76.000%316.667%96.000%2400.000%
1817.000%20.482%37.000%58.730%57.000%132.558%67.000%203.030%77.000%334.783%97.000%3233.333%
1918.000%21.951%38.000%61.290%58.000%138.095%68.000%212.500%78.000%354.545%98.000%4900.000%
2019.000%23.457%39.000%63.934%59.000%143.902%69.000%222.581%79.000%376.190%99.000%9900.000%
2120.000%25.000%40.000%66.667%60.000%150.000%70.000%233.333%80.000%400.000%
Sheet1
 
Last edited:

EOAEvan

Active Member
Joined
Sep 20, 2007
Messages
399
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%.
 
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