This article illustrates how to calculate the retail price in excel. Markup and Margin are two basic elements in sales when determining the retail price of a product. You can calculate the retail price of a product from the cost of the product and either the markup or the margin of it. Following this article, you can learn how to calculate the retail price in both cases.
Download Practice Workbook
You can download the practice workbook from the download button below.
2 Ways to Calculate Retail Price in Excel
1. Calculate Retail Price from Markup
Markup is the percentage of gross profit to the cost price. It is the ratio of the gross profit and the cost of the goods sold.
For example, assume the total cost to manufacture a bicycle is $600. Revenue earned from the sale is $800. Then gross profit is $800 – $600 = $200. Therefore, the markup is ($200/$600)×100% = 33.33%.
Assume you have a list of cost prices along with markup percentages. Now you need to calculate the retail price for each cost price.
Then enter the following formula in cell D5.
2. Calculate Retail Price from Margin
Margin is the percentage of gross profit to the sale price. To simplify, it is the ratio of the gross profit and the revenue earned from a product.
Consider the earlier example. The gross profit is $200 while the revenue is $800. Therefore, the margin is = ($200/$800)×100% = 25%
Now assume you have the margin percentages instead of the markup percentages.
Then apply the following formula in cell D5 to calculate the retail price.
Things to Remember
- First, make sure whether you have the markup % or the margin % before calculating the retail price.
- Markup % should be greater than the margin % to profit from the retail price.
Now you know how to calculate the retail price in excel. Hopefully, this article has helped you with your queries. Please use the comment section below for any suggestions or further queries. You can also visit our ExcelDemy blog to explore more about excel. Stay with us and keep learning.
- How to Calculate Average Price in Excel (7 Useful Methods)
- Calculate Price Per Square Meter in Excel (3 Handy Methods)
- How to Calculate Variable Cost Per Unit in Excel (with Quick Steps)
- Calculate Bond Price in Excel (4 Simple Ways)
- How to Calculate Discount Price in Excel (4 Quick Methods)
- Calculate Price Increase Percentage in Excel (3 Easy Ways)
- How to Calculate Price Per Pound in Excel (3 Easy Ways)